Quality RO Industries (BOM:543460) ROCE % : 15.76% (As of Sep. 2023)

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What is Quality RO Industries 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. Quality RO Industries's annualized ROCE % for the quarter that ended in Sep. 2023 was 15.76%.

Quality RO Industries ROCE % Historical Data

The historical data trend for Quality RO Industries'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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Quality RO Industries ROCE % Chart

Quality RO Industries Annual Data

Trend

Mar22

Mar23

ROCE %

2.25

1.59

Quality RO Industries Semi-Annual Data
	Sep21	Mar22	Sep22	Mar23	Sep23
ROCE %	-	4.49	11.08	-4.83	15.76

Quality RO Industries ROCE % Calculation

Quality RO Industries'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 )
	=	1.166	/	( ( (64.473 - 10.614)	+	(111.953 - 19.212) )	/ 2 )
	=	1.166	/	( (53.859	+	92.741)	/ 2 )
	=	1.166	/	73.3
	=	1.59 %

Quality RO Industries's ROCE % of for the quarter that ended in Sep. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2023 )		(Q: Mar. 2023 )		(Q: Sep. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2023 )		(Q: Mar. 2023 )		(Q: Sep. 2023 )
	=	15.13	/	( ( (111.953 - 19.212)	+	(143.199 - 43.92) )	/ 2 )
	=	15.13	/	( ( 92.741	+	99.279 )	/ 2 )
	=	15.13	/	96.01
	=	15.76 %

(1) Note: The EBIT data used here is two times the semi-annual (Sep. 2023) EBIT data.

Quality RO Industries (BOM:543460) 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.

Quality RO Industries ROCE % Related Terms

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Quality RO Industries (BOM:543460) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Quality RO Industries Ltd (BOM:543460) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Plot No. 09, POR Industrial Park, NH 08 Behind Sahayog Hotel, Village PO, Vadodara, GJ, IND, 391243

Website

https://www.qualityro.in

Quality RO Industries Ltd is engaged in the business of manufacturing, marketing, and supplying components for water purifiers and softener equipment. These water purifier parts have been designed to make a proper fit for RO plants and systems of different varieties, as we produce strictly according to industry standards. The company is at present engaged in the business of Trading and Manufacturing RO products and Transportation activities, which constitute two business segments. The prime revenue generator is the trading and manufacturing of the RO products segment.

Quality RO Industries (BOM:543460) Headlines

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