Honda India Power Products (BOM:522064) ROCE % : 10.37% (As of Mar. 2024)

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What is Honda India Power Products 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. Honda India Power Products's annualized ROCE % for the quarter that ended in Mar. 2024 was 10.37%.

Honda India Power Products ROCE % Historical Data

The historical data trend for Honda India Power Products'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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Honda India Power Products ROCE % Chart

Honda India Power Products Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROCE %

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16.67

11.27

15.72

16.45

16.00

Honda India Power Products 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															5.13	12.38	21.93	19.78	10.37

Honda India Power Products ROCE % Calculation

Honda India Power Products'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 )
	=	1241.7	/	( ( (9301.4 - 1914.2)	+	(9919.3 - 1788.1) )	/ 2 )
	=	1241.7	/	( (7387.2	+	8131.2)	/ 2 )
	=	1241.7	/	7759.2
	=	16.00 %

Honda India Power Products'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 )
	=	843.2	/	( ( (0 - 0)	+	(9919.3 - 1788.1) )	/ 1 )
	=	843.2	/	( ( 0	+	8131.2 )	/ 1 )
	=	843.2	/	8131.2
	=	10.37 %

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

Honda India Power Products (BOM:522064) 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.

Honda India Power Products ROCE % Related Terms

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Honda India Power Products (BOM:522064) Business Description

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GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Honda India Power Products Ltd (BOM:522064) » Definitions » ROCE %

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HONDAPOWER:India

Address

Plot No. 5, Sector-41 Kasna, Greater Noida Industrial Development Area, District Gautam Budh Nagar, Greater Noida, UP, IND, 201310

Website

https://www.hondaindiapower.com

Honda India Power Products Ltd is engaged in the manufacturing and marketing of power products such as portable generators, water pumps, and general-purpose engines. The company is also involved in the marketing of motor-powered lawnmower, brush cutter, long-tailed outboard motors, and power tillers. Its products are manufactured at its facilities located in Greater Noida. The geographical spread of the company business is present across Indian as well as international markets and generating revenues from the sale of its products.

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