Salvo Chemical Industry (DHA:SALVOCHEM) ROCE % : 16.14% (As of Dec. 2023)

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What is Salvo Chemical Industry 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. Salvo Chemical Industry's annualized ROCE % for the quarter that ended in Dec. 2023 was 16.14%.

Salvo Chemical Industry ROCE % Historical Data

The historical data trend for Salvo 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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Salvo Chemical Industry ROCE % Chart

Salvo Chemical Industry Annual Data

Trend

Dec12

Dec13

Dec15

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

ROCE %

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8.67

8.08

5.61

19.38

17.03

Salvo Chemical Industry 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															11.73	11.82	26.54	19.81	16.14

Salvo Chemical Industry ROCE % Calculation

Salvo 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 )
	=	280.908	/	( ( (2253.467 - 604.263)	+	(2604.529 - 954.035) )	/ 2 )
	=	280.908	/	( (1649.204	+	1650.494)	/ 2 )
	=	280.908	/	1649.849
	=	17.03 %

Salvo Chemical Industry'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 )
	=	273.392	/	( ( (2627.824 - 945.714)	+	(2756.385 - 1051.395) )	/ 2 )
	=	273.392	/	( ( 1682.11	+	1704.99 )	/ 2 )
	=	273.392	/	1693.55
	=	16.14 %

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

Salvo Chemical Industry (DHA:SALVOCHEM) 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.

Salvo Chemical Industry ROCE % Related Terms

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Salvo Chemical Industry (DHA:SALVOCHEM) Business Description

Industry

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

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 210-211, Nawabpur Road, Suite number 401, 3rd floor, Dhaka, BGD, 1100

Website

https://www.salvochemical.com

Salvo Chemical Industry Ltd mainly engages in the manufacturing of sulphuric acid and liquid Glucose. In addition to that, the company also produces battery-grade water, Magnesium and zinc sulfate, starch, etc. Sulphuric Acid is used to produce ferrous sulfate, alum, etc, Additionally, it is used in the manufacturing of plasticizers, dyestuffs, explosives, silicate for toothpaste, adhesives, rubbers, edible oils, lubricants, the production of food acids. The segments of the company include Sulphuric Acid and battery-grade water, Starch & by- product, and Liquid Glucose. The majority of revenue is generated from the Starch & by-product segment.

Salvo Chemical Industry (DHA:SALVOCHEM) Headlines

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