Divgi TorqTransfer Systems (BOM:543812) ROCE % : 8.93% (As of Dec. 2023)

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What is Divgi TorqTransfer Systems ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Divgi TorqTransfer Systems's annualized ROCE % for the quarter that ended in Dec. 2023 was 8.93%.

Divgi TorqTransfer Systems ROCE % Historical Data

The historical data trend for Divgi TorqTransfer Systems's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Divgi TorqTransfer Systems ROCE % Chart

Divgi TorqTransfer Systems Annual Data

Trend

Mar20

Mar21

Mar22

Mar23

ROCE %

19.63

20.40

19.25

15.32

Divgi TorqTransfer Systems Quarterly Data
	Mar20	Mar21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %	Get a 7-Day Free Trial					17.90	13.09	10.16	10.23	8.93

Divgi TorqTransfer Systems ROCE % Calculation

Divgi TorqTransfer Systems's annualized ROCE % for the fiscal year that ended in Mar. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Mar. 2023 )		(A: Mar. 2022 )		(A: Mar. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Mar. 2023 )		(A: Mar. 2022 )		(A: Mar. 2023 )
	=	691.13	/	( ( (4053.7 - 598.76)	+	(6419.98 - 851.86) )	/ 2 )
	=	691.13	/	( (3454.94	+	5568.12)	/ 2 )
	=	691.13	/	4511.53
	=	15.32 %

Divgi TorqTransfer Systems's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	507.6	/	( ( (6534.48 - 850.8)	+	(0 - 0) )	/ 1 )
	=	507.6	/	( ( 5683.68	+	0 )	/ 1 )
	=	507.6	/	5683.68
	=	8.93 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

Divgi TorqTransfer Systems (BOM:543812) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Divgi TorqTransfer Systems ROCE % Related Terms

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Divgi TorqTransfer Systems (BOM:543812) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Divgi TorqTransfer Systems Ltd (BOM:543812) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

DIVGIITTS:India

Address

MIDC, Bhosari, Plot No. 75, General Block, Pune, MH, IND, 411026

Website

https://www.divgi-tts.com

Divgi TorqTransfer Systems Ltd is engaged in the business as an automotive component entity. It develops and provides system level transfer case, torque coupler and dual clutch automatic transmissions solutions. The Company operates only in one business segment viz. Auto Components and Parts. The secondary segment is based on geographical demarcation, i.e. domestic and exports.

Divgi TorqTransfer Systems (BOM:543812) Headlines

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