Balu Forge Industries (BOM:531112) ROCE % : 26.36% (As of Mar. 2024)

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What is Balu Forge 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. Balu Forge Industries's annualized ROCE % for the quarter that ended in Mar. 2024 was 26.36%.

Balu Forge Industries ROCE % Historical Data

The historical data trend for Balu Forge 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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Balu Forge Industries ROCE % Chart

Balu Forge Industries Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROCE %

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21.47

35.19

34.43

32.37

32.32

Balu Forge Industries 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															39.55	41.01	29.50	29.80	26.36

Balu Forge Industries ROCE % Calculation

Balu Forge 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 )
	=	1274.81	/	( ( (3707.57 - 1605.956)	+	(7124.606 - 1337.255) )	/ 2 )
	=	1274.81	/	( (2101.614	+	5787.351)	/ 2 )
	=	1274.81	/	3944.4825
	=	32.32 %

Balu Forge Industries'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 )
	=	1525.796	/	( ( (0 - 0)	+	(7124.606 - 1337.255) )	/ 1 )
	=	1525.796	/	( ( 0	+	5787.351 )	/ 1 )
	=	1525.796	/	5787.351
	=	26.36 %

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

Balu Forge Industries (BOM:531112) 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.

Balu Forge Industries ROCE % Related Terms

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Balu Forge Industries (BOM:531112) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Balu Forge Industries Ltd (BOM:531112) » Definitions » ROCE %

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BALUFORGE:India

Address

45 Telly Park Road, 506, 5th Floor, Imperial Palace, Andheri (East), Mumbai, MH, IND, 400069

Website

https://www.baluindustries.com

Balu Forge Industries Ltd is engaged in the business of steel forging. It serves railway; car manufactures; industrial vehicles; defense; oil and gas; agriculture; pumps and other industries. Geographically, it derives a majority of revenue from Outside India. It has a single operating segment: manufacturing and selling Steel Forging Products.

Balu Forge Industries (BOM:531112) Headlines

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