Novartis India (BOM:500672) ROCE % : 11.20% (As of Mar. 2024)

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What is Novartis India 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. Novartis India's annualized ROCE % for the quarter that ended in Mar. 2024 was 11.20%.

Novartis India ROCE % Historical Data

The historical data trend for Novartis India'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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Novartis India ROCE % Chart

Novartis India Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROCE %

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4.27

5.65

0.13

14.97

15.63

Novartis India 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															11.47	13.71	18.12	22.68	11.20

Novartis India ROCE % Calculation

Novartis India'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 )
	=	1243.3	/	( ( (9829.4 - 1594.9)	+	(9249.3 - 1572) )	/ 2 )
	=	1243.3	/	( (8234.5	+	7677.3)	/ 2 )
	=	1243.3	/	7955.9
	=	15.63 %

Novartis India'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 )
	=	859.6	/	( ( (0 - 0)	+	(9249.3 - 1572) )	/ 1 )
	=	859.6	/	( ( 0	+	7677.3 )	/ 1 )
	=	859.6	/	7677.3
	=	11.20 %

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

Novartis India (BOM:500672) 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.

Novartis India ROCE % Related Terms

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Novartis India (BOM:500672) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Novartis India Ltd (BOM:500672) » Definitions » ROCE %

Traded in Other Exchanges

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Address

Inspire BKC, Part of 601 & 701, Bandra Kurla Complex, Bandra (East), Mumbai, MH, IND, 400 051

Website

https://www.novartis.in

Novartis India Ltd is an Indian-based pharmaceutical company. The company is engaged in the trading of Drugs and Pharmaceuticals. It derives revenue from operations in India. The company single business segment namely Pharmaceuticals, Its Pharmaceutical business focuses on Bone and Pain, Calcium portfolio, Gynecology, and Neurosciences.

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