FAR Chemical Industry (DHA:FARCHEM) ROCE %

: 3.45% (As of Sep. 2023)

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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. FAR Chemical Industry's annualized ROCE % for the quarter that ended in Sep. 2023 was 3.45%.

FAR Chemical Industry ROCE % Historical Data

The historical data trend for FAR Chemical Industry'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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FAR Chemical Industry Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

ROCE %

7.32

2.43

-1.01

-2.81

-8.48

FAR Chemical Industry Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
ROCE %																-1.95	-5.40	-9.33	-17.81	3.45

FAR Chemical Industry ROCE % Calculation

FAR Chemical Industry's annualized ROCE % for the fiscal year that ended in Jun. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jun. 2023 )		(A: Jun. 2022 )		(A: Jun. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jun. 2023 )		(A: Jun. 2022 )		(A: Jun. 2023 )
	=	-220.592	/	( ( (3447.977 - 808.338)	+	(3884.091 - 1323.431) )	/ 2 )
	=	-220.592	/	( (2639.639	+	2560.66)	/ 2 )
	=	-220.592	/	2600.1495
	=	-8.48 %

FAR Chemical Industry'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: Jun. 2023 )		(Q: Sep. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2023 )		(Q: Jun. 2023 )		(Q: Sep. 2023 )
	=	89.028	/	( ( (3884.091 - 1323.431)	+	(3868.714 - 1273.84) )	/ 2 )
	=	89.028	/	( ( 2560.66	+	2594.874 )	/ 2 )
	=	89.028	/	2577.767
	=	3.45 %

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

FAR Chemical Industry (DHA:FARCHEM) 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.

FAR Chemical Industry ROCE % Related Terms

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FAR Chemical Industry (DHA:FARCHEM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » FAR Chemical Industry Ltd (DHA:FARCHEM) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

House No. 11 (Floor: 5A), Road No. 12, Block-F, Niketon, Gulshan-1, Dhaka, BGD, 1212

Website

https://www.farchemicalbd.com

FAR Chemical Industry Ltd operates in the textile dyeing chemical industry. The principal activities of the company are to manufacture and export chemical products to different export-oriented textiles, dyeing, and apparel industries. Its product range consists of Softening agent, Scouring agent, Anti-foaming agent, Leveling agent, Fixing agent, Retarding agent, Stabilizer, Bleaching agent, and other chemical products.

FAR Chemical Industry (DHA:FARCHEM) Headlines

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