Tera Software (NSE:TERASOFT) ROCE % : 9.01% (As of Mar. 2024)

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What is Tera Software 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. Tera Software's annualized ROCE % for the quarter that ended in Mar. 2024 was 9.01%.

Tera Software ROCE % Historical Data

The historical data trend for Tera Software'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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Tera Software ROCE % Chart

Tera Software Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROCE %

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15.66

6.80

7.20

12.24

7.69

Tera Software Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Sep23	Dec23	Mar24
ROCE %	Get a 7-Day Free Trial															27.90	11.37	5.13	6.83	9.01

Tera Software ROCE % Calculation

Tera Software's annualized ROCE % for the fiscal year that ended in Mar. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Mar. 2024 )		(A: Mar. 2023 )		(A: Mar. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Mar. 2024 )		(A: Mar. 2023 )		(A: Mar. 2024 )
	=	89.858	/	( ( (1972.615 - 828.872)	+	(2073.197 - 879.238) )	/ 2 )
	=	89.858	/	( (1143.743	+	1193.959)	/ 2 )
	=	89.858	/	1168.851
	=	7.69 %

Tera Software's ROCE % of for the quarter that ended in Mar. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	107.588	/	( ( (0 - 0)	+	(2073.197 - 879.238) )	/ 1 )
	=	107.588	/	( ( 0	+	1193.959 )	/ 1 )
	=	107.588	/	1193.959
	=	9.01 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2024) EBIT data.

Tera Software (NSE:TERASOFT) 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.

Tera Software ROCE % Related Terms

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Tera Software (NSE:TERASOFT) Business Description

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GURUFOCUS.COM » STOCK LIST » Technology » Software » Tera Software Ltd (NSE:TERASOFT) » Definitions » ROCE %

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533982:India

Address

Plot No: 1107, Road No: 55, No. 8-2-293/82/A/1107, Jubilee Hills, Hyderabad, TG, IND, 500033

Website

https://www.terasoftware.com

Tera Software Ltd is engaged in providing IT & Integrated related services. Its segments include Integrated Solutions, Technical Division, Projects Division, Software Development Services to customers globally operating and Others. The firm offers its services in various categories, such as system integration and networking, software development and consultancy, and e-governance. The company serves various industries, including energy and utilities; education; banking and financial services; communications, and consumer goods. The firm's operations are carried out in India.

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