Tata Motors (BOM:500570) ROCE % : 14.63% (As of Sep. 2024)

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What is Tata 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. Tata Motors's annualized ROCE % for the quarter that ended in Sep. 2024 was 14.63%.

Tata Motors ROCE % Historical Data

The historical data trend for Tata 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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Tata Motors ROCE % Chart

Tata Motors Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROCE %

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-2.24

-2.04

1.29

7.55

20.07

Tata Motors Quarterly Data
	Dec14	Mar15	Mar16	Mar17	Mar18	Mar19	Mar20	Mar21	Sep21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROCE %	Get a 7-Day Free Trial															19.01	21.84	24.47	22.24	14.63

Tata Motors ROCE % Calculation

Tata 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 )
	=	379408.7	/	( ( (3360813.8 - 1550273.4)	+	(3706639.6 - 1736170) )	/ 2 )
	=	379408.7	/	( (1810540.4	+	1970469.6)	/ 2 )
	=	379408.7	/	1890505
	=	20.07 %

Tata Motors'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 )
	=	312040	/	( ( (0 - 0)	+	(3906560 - 1773620) )	/ 1 )
	=	312040	/	( ( 0	+	2132940 )	/ 1 )
	=	312040	/	2132940
	=	14.63 %

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

Tata Motors (BOM:500570) 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.

Tata Motors ROCE % Related Terms

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Tata Motors Business Description

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TATAMOTORS:India

Address

24, Homi Mody Street, Bombay House, Mumbai, MH, IND, 400001

Website

https://www.tatamotors.com

Tata Motors Ltd is an automobile manufacturer company. The company's segment includes Automotive and others. The Automotive segment consists of four reportable sub-segments: Tata Commercial Vehicles, Tata Passenger Vehicles, Jaguar Land Rover, and Vehicle Financing. Others consist of IT services and Insurance Broking services. Geographically, it derives a substantial portion of its overall revenue from the overseas markets.

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