Reliance Industries (BOM:500325) ROCE % : 9.05% (As of Sep. 2024)

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What is Reliance Industries 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. Reliance Industries's annualized ROCE % for the quarter that ended in Sep. 2024 was 9.05%.

Reliance Industries ROCE % Historical Data

The historical data trend for Reliance Industries'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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Reliance Industries ROCE % Chart

Reliance Industries Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROCE %

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10.22

8.17

8.64

9.41

9.84

Reliance Industries Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROCE %	Get a 7-Day Free Trial															9.88	9.74	9.49	8.58	9.05

Reliance Industries ROCE % Calculation

Reliance Industries'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 )
	=	1264990	/	( ( (16074310 - 3957430)	+	(17559860 - 3973670) )	/ 2 )
	=	1264990	/	( (12116880	+	13586190)	/ 2 )
	=	1264990	/	12851535
	=	9.84 %

Reliance Industries's ROCE % of for the quarter that ended in Sep. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	1242160	/	( ( (0 - 0)	+	(18151230 - 4427600) )	/ 1 )
	=	1242160	/	( ( 0	+	13723630 )	/ 1 )
	=	1242160	/	13723630
	=	9.05 %

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

Reliance Industries (BOM:500325) 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.

Reliance Industries ROCE % Related Terms

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Reliance Industries Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Reliance Industries Ltd (BOM:500325) » Definitions » ROCE %

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RELIANCE:India RIGDl:UK RIGD:UK RLI:Germany

Address

222, Nariman Point, 3rd Floor, Maker Chambers IV, Mumbai, MH, IND, 400021

Website

https://www.ril.com

Reliance Industries Ltd is engaged in hydrocarbon exploration and production, refining and marketing, petrochemicals, financial services, retail, and communications. The Group has five principal operating and reporting segments: Oil To Chemicals (O2C), Oil and Gas, Retail, Digital Services and Financial Services. Reliance's refineries produce a range of petroleum products that find use as fuel variants, feedstock, and fuel for power and cement plants. Fuels produced in refineries are exported to several countries and can be processed into any grade of gasoline or diesel. The Oil to Chemicals segment that derives the majority revenue includes Refining, Petrochemicals, fuel retailing through Reliance BP Mobility Limited, aviation fuel, and bulk wholesale marketing.

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