Aurobindo Pharma (Aurobindo Pharma) ROCE % : 16.05% (As of Mar. 2024)

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What is Aurobindo Pharma 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. Aurobindo Pharma's annualized ROCE % for the quarter that ended in Mar. 2024 was 16.05%.

Aurobindo Pharma ROCE % Historical Data

The historical data trend for Aurobindo Pharma'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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Aurobindo Pharma ROCE % Chart

Aurobindo Pharma Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROCE %

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23.52

36.72

13.63

9.79

15.18

Aurobindo Pharma 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															11.07	12.24	14.80	17.28	16.05

Aurobindo Pharma ROCE % Calculation

Aurobindo Pharma'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 )
	=	562.469	/	( ( (4848.874 - 1397.14)	+	(5428.903 - 1469.396) )	/ 2 )
	=	562.469	/	( (3451.734	+	3959.507)	/ 2 )
	=	562.469	/	3705.6205
	=	15.18 %

Aurobindo Pharma'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 )
	=	635.656	/	( ( (0 - 0)	+	(5428.903 - 1469.396) )	/ 1 )
	=	635.656	/	( ( 0	+	3959.507 )	/ 1 )
	=	635.656	/	3959.507
	=	16.05 %

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

Aurobindo Pharma (GREY:ARBQY) 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.

Aurobindo Pharma ROCE % Related Terms

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Aurobindo Pharma (Aurobindo Pharma) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Aurobindo Pharma Ltd (GREY:ARBQY) » Definitions » ROCE %

Traded in Other Exchanges

AUROPHARMA:India 524804:India

Address

Plot No. 1, Survey No. 83/1, Galaxy, Floors: 22-24, Hyderabad Knowledge City, Raidurg Panmaktha, Ranga Reddy District, Hyderabad, TG, IND, 500 032

Website

https://www.aurobindo.com

Aurobindo Pharma Ltd is a specialty and generic drug manufacturing company. The company's product portfolio spans a variety of therapeutic areas. The vast majority of the company's sales are generated in the United States, followed by Europe. Most of Aurobindo's sales are derived from its formulations business, with the rest stemming from its active pharmaceutical ingredient operations. The company considers merger and acquisition investment as a potential component of its operational growth strategy for expanding its research, development, manufacturing, and marketing capabilities.

Aurobindo Pharma (Aurobindo Pharma) Headlines

From GuruFocus

Aurobindo Pharma Wins Company of the Year and Acquisition of the Year Awards at the Global Generics & Biosimilars Awards 2019

By PRNewswire PRNewswire • 11-21-2019