Hindustan Unilever (NSE:HINDUNILVR) ROCE % : 21.48% (As of Mar. 2024)

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What is Hindustan Unilever 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. Hindustan Unilever's annualized ROCE % for the quarter that ended in Mar. 2024 was 21.48%.

Hindustan Unilever ROCE % Historical Data

The historical data trend for Hindustan Unilever'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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Hindustan Unilever ROCE % Chart

Hindustan Unilever Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROCE %

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89.35

31.31

20.49

22.37

22.51

Hindustan Unilever Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROCE %	Get a 7-Day Free Trial															23.07	23.09	22.92	22.05	21.48

Hindustan Unilever ROCE % Calculation

Hindustan Unilever'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 )
	=	142600	/	( ( (730870 - 120280)	+	(784990 - 128760) )	/ 2 )
	=	142600	/	( (610590	+	656230)	/ 2 )
	=	142600	/	633410
	=	22.51 %

Hindustan Unilever'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 )
	=	140960	/	( ( (0 - 0)	+	(784990 - 128760) )	/ 1 )
	=	140960	/	( ( 0	+	656230 )	/ 1 )
	=	140960	/	656230
	=	21.48 %

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

Hindustan Unilever (NSE:HINDUNILVR) 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.

Hindustan Unilever ROCE % Related Terms

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Hindustan Unilever (NSE:HINDUNILVR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Hindustan Unilever Ltd (NSE:HINDUNILVR) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

500696:India

Address

B. D. Sawant Marg, Unilever House, Chakala, Andheri (East), Mumbai, MH, IND, 400 099

Website

https://www.hul.co.in

Hindustan Unilever Ltd is an Indian consumer goods company. The firm's offering is diverse, as it includes over 50 brands from 16 distinct categories, from cosmetics and hygienic items (detergents, soaps, shampoos, skincare, toothpaste, and deodorants), to food and beverages (tea, coffee, packaged foods). Its product portfolio contains household brands such as Lux, Lifebuoy, Pepsodent, Closeup, Pureit, Axe, Brooke Bond, Bru, Knorr, Kissan, Pond's, Vaseline, Lakme, Dove, Clinic Plus, Sunsilk, Kwality Wall's, Surf Excel, Rin, Wheel, and Fair and Lovely.

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