Ceat (BOM:500878) ROCE % : 14.16% (As of Mar. 2024)

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What is Ceat 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. Ceat's annualized ROCE % for the quarter that ended in Mar. 2024 was 14.16%.

Ceat ROCE % Historical Data

The historical data trend for Ceat'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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Ceat ROCE % Chart

Ceat Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROCE %

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9.66

12.85

5.56

8.89

19.83

Ceat 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															17.24	19.65	24.68	21.15	14.16

Ceat ROCE % Calculation

Ceat'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 )
	=	11049.6	/	( ( (96278.3 - 41444.2)	+	(99945 - 43331.6) )	/ 2 )
	=	11049.6	/	( (54834.1	+	56613.4)	/ 2 )
	=	11049.6	/	55723.75
	=	19.83 %

Ceat'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 )
	=	8014	/	( ( (0 - 0)	+	(99945 - 43331.6) )	/ 1 )
	=	8014	/	( ( 0	+	56613.4 )	/ 1 )
	=	8014	/	56613.4
	=	14.16 %

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

Ceat (BOM:500878) 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.

Ceat ROCE % Related Terms

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Ceat (BOM:500878) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Ceat Ltd (BOM:500878) » Definitions » ROCE %

Traded in Other Exchanges

CEATLTD:India

Address

463, Dr. Annie Besant Road, RPG House, Worli, Mumbai, MH, IND, 400030

Website

https://www.ceat.com

Ceat Ltd is a tire manufacturer that operates within the RPG Group. It has a diverse product portfolio encompassing truck tires, off-the-road (OTR) vehicles, and light commercial vehicle categories. Tires are built to meet a range of specifications, such as ride comfort and low noise for European regulation requirements, in addition to builds that permit higher life targets for more industrial use.

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