JK Tyre & Industries (BOM:530007) ROCE % : 14.66% (As of Sep. 2024)

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What is JK Tyre & Industries 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. JK Tyre & Industries's annualized ROCE % for the quarter that ended in Sep. 2024 was 14.66%.

JK Tyre & Industries ROCE % Historical Data

The historical data trend for JK Tyre & Industries'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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JK Tyre & Industries ROCE % Chart

JK Tyre & Industries Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROCE %

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7.99

14.85

10.72

12.43

21.21

JK Tyre & Industries Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROCE %	Get a 7-Day Free Trial															25.42	23.40	16.94	19.16	14.66

JK Tyre & Industries ROCE % Calculation

JK Tyre & Industries'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 )
	=	16537.1	/	( ( (124485.6 - 52608.7)	+	(140944.9 - 56857.9) )	/ 2 )
	=	16537.1	/	( (71876.9	+	84087)	/ 2 )
	=	16537.1	/	77981.95
	=	21.21 %

JK Tyre & Industries's ROCE % of for the quarter that ended in Sep. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	12754.4	/	( ( (0 - 0)	+	(148757.9 - 61781.1) )	/ 1 )
	=	12754.4	/	( ( 0	+	86976.8 )	/ 1 )
	=	12754.4	/	86976.8
	=	14.66 %

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

JK Tyre & Industries (BOM:530007) 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.

JK Tyre & Industries ROCE % Related Terms

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JK Tyre & Industries Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » JK Tyre & Industries Ltd (BOM:530007) » Definitions » ROCE %

Traded in Other Exchanges

JKTYRE:India

Address

3, Bahadur Shah Zafar Marg, New Delhi, IND, 110 002

Website

https://www.jktyre.com

JK Tyre & Industries Ltd is an Indian company engaged in developing, manufacturing, marketing, and distributing of automotive Tyres, Tubes, Flaps, and ancillary services, under the brand JK Tyre, Vikrant, and Tornel. The tire products offered by the group are Truck/Bus Radial and Bias, Passenger car radials, 2/3 wheeler tires, LCV and SCV Bias and Radial, Off-Highway Tyres (OTR and Farm), as well as specialty tires for Racing, Military and Defence, Industrial and Farm applications. The group operates geographically in India, Mexico, and other countries, of which India accounts for the larger portion of revenue.

JK Tyre & Industries Headlines

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