Sterling Tools (BOM:530759) ROCE % : 14.52% (As of Dec. 2024)

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What is Sterling Tools 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. Sterling Tools's annualized ROCE % for the quarter that ended in Dec. 2024 was 14.52%.

Sterling Tools ROCE % Historical Data

The historical data trend for Sterling Tools'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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Sterling Tools ROCE % Chart

Sterling Tools Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROCE %

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11.11

9.52

9.83

15.84

16.46

Sterling Tools 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															16.27	18.11	20.52	18.32	14.52

Sterling Tools ROCE % Calculation

Sterling Tools'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 )
	=	811.139	/	( ( (6569.262 - 1862.714)	+	(7127.757 - 1976.962) )	/ 2 )
	=	811.139	/	( (4706.548	+	5150.795)	/ 2 )
	=	811.139	/	4928.6715
	=	16.46 %

Sterling Tools'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 )
	=	807.172	/	( ( (7639.055 - 2080.643)	+	(0 - 0) )	/ 1 )
	=	807.172	/	( ( 5558.412	+	0 )	/ 1 )
	=	807.172	/	5558.412
	=	14.52 %

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

Sterling Tools (BOM:530759) 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.

Sterling Tools ROCE % Related Terms

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Sterling Tools Business Description

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STERTOOLS:India

Address

Plot No. 4, DLF Industrial Estate, Faridabad, HR, IND, 121 003

Website

https://www.stlfasteners.com

Sterling Tools Ltd engages in the manufacture and trade of high tensile cold forged fasteners. The firm offers its products in various categories namely Standard Fasteners, Special Fasteners, Chassis Fasteners, and Engine Fasteners. Its products include bolts, nuts, screws, washers of iron and steel, and cold-forged high-tensile fasteners for automobiles, general engineering, consumer durables, railways, and the auto replacement industry. The company has five segments which include Passenger Vehicles, Commercial Vehicles, Three-Wheelers, Two-Wheelers, and Quadricycle and a majority of revenue comes from Two-Wheelers. Geographically, the majority of the revenue comes from India.

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