Vardhman Textiles (BOM:502986) ROCE % : 11.80% (As of Mar. 2024)

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What is Vardhman Textiles 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. Vardhman Textiles's annualized ROCE % for the quarter that ended in Mar. 2024 was 11.80%.

Vardhman Textiles ROCE % Historical Data

The historical data trend for Vardhman Textiles'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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Vardhman Textiles ROCE % Chart

Vardhman Textiles Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROCE %

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10.47

8.27

24.95

12.27

9.46

Vardhman Textiles 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															9.77	8.65	7.88	9.10	11.80

Vardhman Textiles ROCE % Calculation

Vardhman Textiles'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 )
	=	9372.1	/	( ( (113325.6 - 14448.4)	+	(119807.9 - 20620.8) )	/ 2 )
	=	9372.1	/	( (98877.2	+	99187.1)	/ 2 )
	=	9372.1	/	99032.15
	=	9.46 %

Vardhman Textiles'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 )
	=	11703.6	/	( ( (0 - 0)	+	(119807.9 - 20620.8) )	/ 1 )
	=	11703.6	/	( ( 0	+	99187.1 )	/ 1 )
	=	11703.6	/	99187.1
	=	11.80 %

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

Vardhman Textiles (BOM:502986) 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.

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Vardhman Textiles (BOM:502986) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Vardhman Textiles Ltd (BOM:502986) » Definitions » ROCE %

Traded in Other Exchanges

VTL:India

Address

Chandigarh Road, Vardhman Premises, Ludhiana, PB, IND, 141010

Website

https://www.vardhman.com

Vardhman Textiles Ltd is a manufacturer and seller of textiles and acrylic fiber. The company is based in India and generates about a quarter of revenue internationally. The company's largest revenue segment is textiles, which offers greige and dyed yarns in a number of fabrics such as cotton, polyester, acrylic, organic cotton, melange, cellulose, and synthetics. Vardhman Textiles provides fabrics for the apparel industry and home textiles and manufactures shirts for retail brands. In addition, the company offers hot-rolled bars for use in industries such as automotive, engineering, and allied industries.

Vardhman Textiles (BOM:502986) Headlines

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