Hindustan Motors (BOM:500500) ROCE % : 64.78% (As of Dec. 2024)

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What is Hindustan Motors 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 Motors's annualized ROCE % for the quarter that ended in Dec. 2024 was 64.78%.

Hindustan Motors ROCE % Historical Data

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

Hindustan Motors Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROCE %

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387.20

Hindustan Motors Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
ROCE %	Get a 7-Day Free Trial															-	340.20	170.68	86.81	64.78

Hindustan Motors ROCE % Calculation

Hindustan Motors'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 )
	=	253.251	/	( ( (269.553 - 328.101)	+	(527.98 - 338.619) )	/ 2 )
	=	253.251	/	( (-58.548	+	189.361)	/ 2 )
	=	253.251	/	65.4065
	=	387.20 %

Hindustan Motors's ROCE % of for the quarter that ended in Dec. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2024 )		(Q: Sep. 2024 )		(Q: Dec. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2024 )		(Q: Sep. 2024 )		(Q: Dec. 2024 )
	=	197.6	/	( ( (684.677 - 379.653)	+	(0 - 0) )	/ 1 )
	=	197.6	/	( ( 305.024	+	0 )	/ 1 )
	=	197.6	/	305.024
	=	64.78 %

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

Hindustan Motors (BOM:500500) 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 Motors ROCE % Related Terms

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Hindustan Motors Business Description

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GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Hindustan Motors Ltd (BOM:500500) » Definitions » ROCE %

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HINDMOTORS:India

Address

9/1, Rajendra Nath Mukherjee Road, Birla Building, 13th Floor, Kolkata, WB, IND, 700 001

Website

http://www.hindmotor.com

Hindustan Motors Ltd is engaged in manufacturing and sale of vehicles, spare parts of vehicles, steel products, and components. The company is also engaged in trading of spare parts of vehicles.

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