Kennametal India (BOM:505890) ROCE % : 16.54% (As of Dec. 2024)

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What is Kennametal 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. Kennametal India's annualized ROCE % for the quarter that ended in Dec. 2024 was 16.54%.

Kennametal India ROCE % Historical Data

The historical data trend for Kennametal 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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Kennametal India ROCE % Chart

Kennametal India Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

ROCE %

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26.21

8.06

17.16

24.55

17.43

Kennametal India Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
ROCE %	Get a 7-Day Free Trial															18.34	28.02	21.72	18.36	16.54

Kennametal India ROCE % Calculation

Kennametal India's annualized ROCE % for the fiscal year that ended in Jun. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jun. 2023 )		(A: Jun. 2022 )		(A: Jun. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jun. 2023 )		(A: Jun. 2022 )		(A: Jun. 2023 )
	=	1178	/	( ( (8298 - 1759)	+	(8510 - 1531) )	/ 2 )
	=	1178	/	( (6539	+	6979)	/ 2 )
	=	1178	/	6759
	=	17.43 %

Kennametal India's ROCE % of for the quarter that ended in Dec. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2024 )		(Q: Sep. 2024 )		(Q: Dec. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2024 )		(Q: Sep. 2024 )		(Q: Dec. 2024 )
	=	1296	/	( ( (0 - 0)	+	(9789 - 1953) )	/ 1 )
	=	1296	/	( ( 0	+	7836 )	/ 1 )
	=	1296	/	7836
	=	16.54 %

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

Kennametal India (BOM:505890) 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.

Kennametal India ROCE % Related Terms

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Kennametal India Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Kennametal India Ltd (BOM:505890) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

8/9th Mile, Tumkur Road, Bengaluru, KA, IND, 560073

Website

https://www.kennametal.com

Kennametal India Ltd is an Indian company engaged in the business of manufacturing and trading of hard metal products and machine tools, which are sold in domestic and export markets. It has two reportable segments. Machining solutions segment designs manufacture and sells customized capital intensive machines. Its sales comprise of machines, fixtures, sale of spares, and after-sales service. The hard metal products segment, which is the key revenue driver, deals in metal and metal cutting tools. Its products portfolio includes metalworking tools, mining, construction, engineered components, powdered materials and equipment, wear components, and ceramics. Geographically, it generates the majority of the revenue from India and also exports to Germany, China, the United States and others.

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