IP Rings (BOM:523638) ROCE % : 10.22% (As of Mar. 2024)

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What is IP Rings 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. IP Rings's annualized ROCE % for the quarter that ended in Mar. 2024 was 10.22%.

IP Rings ROCE % Historical Data

The historical data trend for IP Rings'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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IP Rings ROCE % Chart

IP Rings Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROCE %

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7.84

9.84

12.77

7.70

4.97

IP Rings 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															1.87	3.02	3.11	4.10	10.22

IP Rings ROCE % Calculation

IP Rings'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 )
	=	76.282	/	( ( (3159.232 - 1556.215)	+	(3070.41 - 1603.185) )	/ 2 )
	=	76.282	/	( (1603.017	+	1467.225)	/ 2 )
	=	76.282	/	1535.121
	=	4.97 %

IP Rings'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 )
	=	149.968	/	( ( (0 - 0)	+	(3070.41 - 1603.185) )	/ 1 )
	=	149.968	/	( ( 0	+	1467.225 )	/ 1 )
	=	149.968	/	1467.225
	=	10.22 %

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

IP Rings (BOM:523638) 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.

IP Rings ROCE % Related Terms

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IP Rings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » IP Rings Ltd (BOM:523638) » Definitions » ROCE %

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Address

D 11/12, Industrial Estate, Maraimalai Nagar, Chengalpattu District, Chennai, TN, IND, 603209

Website

https://www.iprings.com

IP Rings Ltd is engaged in the manufacturing of Auto Component which includes Piston Rings, Differential Gears, Pole Wheel, and other Transmission Components. The geographical segments of the company include India, the United States, Thailand, and the Rest of the world, of which the majority of the revenue comes from the Indian Market.

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