Rane (Madras) (BOM:532661) ROCE % : 1.65% (As of Mar. 2024)

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What is Rane (Madras) 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. Rane (Madras)'s annualized ROCE % for the quarter that ended in Mar. 2024 was 1.65%.

Rane (Madras) ROCE % Historical Data

The historical data trend for Rane (Madras)'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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Rane (Madras) ROCE % Chart

Rane (Madras) Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROCE %

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-2.03

-7.16

9.42

17.91

-8.57

Rane (Madras) 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															20.42	0.71	-57.16	20.46	1.65

Rane (Madras) ROCE % Calculation

Rane (Madras)'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 )
	=	-461.4	/	( ( (13489.2 - 8256.1)	+	(13691.6 - 8153.8) )	/ 2 )
	=	-461.4	/	( (5233.1	+	5537.8)	/ 2 )
	=	-461.4	/	5385.45
	=	-8.57 %

Rane (Madras)'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 )
	=	91.6	/	( ( (0 - 0)	+	(13691.6 - 8153.8) )	/ 1 )
	=	91.6	/	( ( 0	+	5537.8 )	/ 1 )
	=	91.6	/	5537.8
	=	1.65 %

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

Rane (Madras) (BOM:532661) 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.

Rane (Madras) ROCE % Related Terms

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Rane (Madras) (BOM:532661) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Rane (Madras) Ltd (BOM:532661) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

RML:India

Address

154, Velachery Road, Ganapathi Buildings, Chennai, TN, IND, 600 042

Website

http://www.ranegroup.com

Rane (Madras) Ltd provides components for the transportation industry. The company is a manufacturer of steering and suspension linkages products, steering gear products and other articles of aluminum die casting products. It operates through two divisions: steering and linkages division and Light Metal Castings division. The Company's steering and linkages division manufacture manual steering gears, hydrostatic steering systems, and steering and suspension linkage products. The Company's Light Metal Castings division manufactures low porosity, high-quality aluminum die-castings such as steering housings and engine case covers. The Company is a supplier to manufacturers of passenger cars, utility vehicles and farm tractors across the globe.

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