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Happy Forgings (BOM:544057) Return-on-Tangible-Asset : 12.31% (As of Mar. 2025)


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What is Happy Forgings Return-on-Tangible-Asset?

Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Happy Forgings's annualized Net Income for the quarter that ended in Mar. 2025 was ₹2,709 Mil. Happy Forgings's average total tangible assets for the quarter that ended in Mar. 2025 was ₹22,007 Mil. Therefore, Happy Forgings's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2025 was 12.31%.

The historical rank and industry rank for Happy Forgings's Return-on-Tangible-Asset or its related term are showing as below:

BOM:544057' s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 9.88   Med: 14.2   Max: 17.02
Current: 13.17

During the past 5 years, Happy Forgings's highest Return-on-Tangible-Asset was 17.02%. The lowest was 9.88%. And the median was 14.20%.

BOM:544057's Return-on-Tangible-Asset is ranked better than
91.55% of 3031 companies
in the Industrial Products industry
Industry Median: 3.3 vs BOM:544057: 13.17

Happy Forgings Return-on-Tangible-Asset Historical Data

The historical data trend for Happy Forgings's Return-on-Tangible-Asset 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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Happy Forgings Return-on-Tangible-Asset Chart

Happy Forgings Annual Data
Trend Mar21 Mar22 Mar23 Mar24 Mar25
Return-on-Tangible-Asset
9.88 14.20 17.02 15.16 13.11

Happy Forgings Quarterly Data
Mar21 Mar22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Return-on-Tangible-Asset Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only 14.00 13.57 14.21 12.85 12.31

Competitive Comparison of Happy Forgings's Return-on-Tangible-Asset

For the Metal Fabrication subindustry, Happy Forgings's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Happy Forgings's Return-on-Tangible-Asset Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Happy Forgings's Return-on-Tangible-Asset distribution charts can be found below:

* The bar in red indicates where Happy Forgings's Return-on-Tangible-Asset falls into.


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Happy Forgings Return-on-Tangible-Asset Calculation

Happy Forgings's annualized Return-on-Tangible-Asset for the fiscal year that ended in Mar. 2025 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(A: Mar. 2025 )  (A: Mar. 2024 )(A: Mar. 2025 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(A: Mar. 2025 )  (A: Mar. 2024 )(A: Mar. 2025 )
=2674.363/( (18799.984+22006.893)/ 2 )
=2674.363/20403.4385
=13.11 %

Happy Forgings's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2025 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(Q: Mar. 2025 )  (Q: Dec. 2024 )(Q: Mar. 2025 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(Q: Mar. 2025 )  (Q: Dec. 2024 )(Q: Mar. 2025 )
=2708.784/( (0+22006.893)/ 1 )
=2708.784/22006.893
=12.31 %

* 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.

In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Mar. 2025) net income data.


Happy Forgings  (BOM:544057) Return-on-Tangible-Asset Explanation

Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.


Be Aware

Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the company’s earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a company’s tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.


Happy Forgings Return-on-Tangible-Asset Related Terms

Thank you for viewing the detailed overview of Happy Forgings's Return-on-Tangible-Asset provided by GuruFocus.com. Please click on the following links to see related term pages.


Happy Forgings Business Description

Traded in Other Exchanges
Address
H.B 220, Post Office - Rajgarh, Village Dugri, Ludhiana, PB, IND, 141 421
Happy Forgings Ltd is a manufacturer specializing in designing and manufacturing heavy forgings and high-precision machined components. The company manufactures, designs, and tests various products such as crankshafts, front axle carriers, steering knuckles, differential housings, transmission parts, pinion shafts, suspension products, and valve bodies for different industries and customers. The Company business comprises only the Forging segment where the company sells forged products comprising of forgings and machined components for the automotive and industrial sectors. The company generates the majority of its revenue within India.

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