Tech Mahindra (BOM:532755) ROCE % : 10.36% (As of Dec. 2023)

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What is Tech Mahindra 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. Tech Mahindra's annualized ROCE % for the quarter that ended in Dec. 2023 was 10.36%.

Tech Mahindra ROCE % Historical Data

The historical data trend for Tech Mahindra'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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Tech Mahindra ROCE % Chart

Tech Mahindra Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROCE %

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24.78

21.04

21.85

24.59

20.66

Tech Mahindra Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %	Get a 7-Day Free Trial															23.80	19.28	13.29	9.29	10.36

Tech Mahindra ROCE % Calculation

Tech Mahindra'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 )
	=	67353	/	( ( (448707 - 125048)	+	(461533 - 133210) )	/ 2 )
	=	67353	/	( (323659	+	328323)	/ 2 )
	=	67353	/	325991
	=	20.66 %

Tech Mahindra'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 )
	=	31812	/	( ( (434907 - 127954)	+	(0 - 0) )	/ 1 )
	=	31812	/	( ( 306953	+	0 )	/ 1 )
	=	31812	/	306953
	=	10.36 %

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

Tech Mahindra (BOM:532755) 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.

Tech Mahindra ROCE % Related Terms

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Tech Mahindra (BOM:532755) Business Description

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GURUFOCUS.COM » STOCK LIST » Technology » Software » Tech Mahindra Ltd (BOM:532755) » Definitions » ROCE %

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TECHM:India

Address

Plot No. 1, Phase III, Rajiv Gandhi Infotech Park, Hinjewadi, Pune, MH, IND, 411 057

Website

https://www.techmahindra.com

Tech Mahindra Ltd is an IT services and consulting company in India. It offers a variety of technology solutions and services in addition to business process services. Its segments are Information Technology and Business Processing Outsourcing. The technology solutions include helping companies engage in cloud software, mobile solutions, network services, cybersecurity, and a variety of other options. The business process service is offered across various industries including telecom, financial services, retail, energy, hospitality, high-tech, agriculture, and food beverage. The company's approach includes cost reduction, process optimization, and ownership through automation and productivity improvements. Tech Mahindra generates approximately half of its revenue from the United States.

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