Maruti Suzuki India (NSE:MARUTI) ROCE %

: 24.38% (As of Dec. 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. Maruti Suzuki India's annualized ROCE % for the quarter that ended in Dec. 2023 was 24.38%.

Maruti Suzuki India ROCE % Historical Data

The historical data trend for Maruti Suzuki India'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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Maruti Suzuki India Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROCE %

22.62

14.17

10.06

8.55

17.21

Maruti Suzuki India Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %																20.51	20.62	20.33	28.41	24.38

Maruti Suzuki India ROCE % Calculation

Maruti Suzuki India'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 )
	=	105101	/	( ( (746555 - 170235)	+	(845969 - 201073) )	/ 2 )
	=	105101	/	( (576320	+	644896)	/ 2 )
	=	105101	/	610608
	=	17.21 %

Maruti Suzuki India'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 )
	=	167656	/	( ( (904767 - 217226)	+	(0 - 0) )	/ 1 )
	=	167656	/	( ( 687541	+	0 )	/ 1 )
	=	167656	/	687541
	=	24.38 %

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

Maruti Suzuki India (NSE:MARUTI) 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.

Maruti Suzuki India ROCE % Related Terms

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Maruti Suzuki India (NSE:MARUTI) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Maruti Suzuki India Ltd (NSE:MARUTI) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

532500:India

Address

Plot No. 1, Nelson Mandela Road, Vasant Kunj, New Delhi, IND, 110 070

Website

https://www.marutisuzuki.com

Maruti Suzuki India Ltd, a subsidiary of Suzuki Motor Corp., is the leading passenger-vehicle manufacturer by sales and production. It manufactures, buys, and sells vehicles and spare parts. The company also facilitates used-car sales, fleet management, and financing. The company offers a range of cars across different segments with 15 brands and over 150 variants including Alto, the world's best-selling small car.

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