Asian Paints (BOM:500820) ROCE % : 19.79% (As of Sep. 2024)

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What is Asian Paints 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. Asian Paints's annualized ROCE % for the quarter that ended in Sep. 2024 was 19.79%.

Asian Paints ROCE % Historical Data

The historical data trend for Asian Paints'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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Asian Paints ROCE % Chart

Asian Paints Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROCE %

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32.67

33.53

28.69

35.02

38.41

Asian Paints 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															35.73	42.46	31.33	30.98	19.79

Asian Paints ROCE % Calculation

Asian Paints'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 )
	=	75529.4	/	( ( (257980 - 78959.3)	+	(299240.9 - 85009.6) )	/ 2 )
	=	75529.4	/	( (179020.7	+	214231.3)	/ 2 )
	=	75529.4	/	196626
	=	38.41 %

Asian Paints'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 )
	=	40882	/	( ( (0 - 0)	+	(294741.4 - 88173.9) )	/ 1 )
	=	40882	/	( ( 0	+	206567.5 )	/ 1 )
	=	40882	/	206567.5
	=	19.79 %

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

Asian Paints (BOM:500820) 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.

Asian Paints ROCE % Related Terms

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Asian Paints Business Description

Industry

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ASIANPAINT:India

Address

Asian Paints House, 6A, Shantinagar, Santacruz (East), Mumbai, MH, IND, 400 055

Website

https://www.asianpaints.com

Asian Paints Ltd manufactures and sells a variety of paint and home improvement products. The firm operates itself as a Paints and Home Decor company which sells interior and exterior paints, metal finish, and wood finish. The home improvement product offerings include kitchen and bathroom products. Asian Paints sells its products to distributors and directly to the home improvement industry through the company's network of retail stores. The majority of revenue comes from India.

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