Automotive Axles (BOM:505010) ROCE % : 26.74% (As of Mar. 2024)

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What is Automotive Axles 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. Automotive Axles's annualized ROCE % for the quarter that ended in Mar. 2024 was 26.74%.

Automotive Axles ROCE % Historical Data

The historical data trend for Automotive Axles'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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Automotive Axles ROCE % Chart

Automotive Axles Annual Data

Trend

Sep14

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROCE %

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10.45

5.75

16.63

30.85

26.81

Automotive Axles 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															34.98	26.24	29.70	25.94	26.74

Automotive Axles ROCE % Calculation

Automotive Axles'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 )
	=	2256.19	/	( ( (11565.7 - 3715.52)	+	(12297.29 - 3317.6) )	/ 2 )
	=	2256.19	/	( (7850.18	+	8979.69)	/ 2 )
	=	2256.19	/	8414.935
	=	26.81 %

Automotive Axles'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 )
	=	2401	/	( ( (0 - 0)	+	(12297.29 - 3317.6) )	/ 1 )
	=	2401	/	( ( 0	+	8979.69 )	/ 1 )
	=	2401	/	8979.69
	=	26.74 %

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

Automotive Axles (BOM:505010) 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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Automotive Axles (BOM:505010) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Automotive Axles Ltd (BOM:505010) » Definitions » ROCE %

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AUTOAXLES:India

Address

Off Hunsur Road, Hootagalli Indsutrial Area, Mysore, KA, IND, 570 018

Website

https://www.autoaxle.com

Automotive Axles Ltd is an India-based company engaged in the manufacturing and sale of automotive components. The company manufactures rear drive axle assemblies in India. It manufactures Drive axles, Non-drive axles, Front steer axles, Specialty and defense axles, and Drum and disc brakes. These products are provided to the domestic and global manufacturers of trucks and buses pertaining to segments such as light, medium, and heavy commercial vehicles, military and off-highway vehicles, aftermarket, and exports. The company operates in India.

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