Vardhman Special Steels (BOM:534392) ROCE % : 25.67% (As of Mar. 2024)

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What is Vardhman Special Steels 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. Vardhman Special Steels's annualized ROCE % for the quarter that ended in Mar. 2024 was 25.67%.

Vardhman Special Steels ROCE % Historical Data

The historical data trend for Vardhman Special Steels'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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Vardhman Special Steels ROCE % Chart

Vardhman Special Steels Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROCE %

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4.33

15.50

28.42

22.22

19.27

Vardhman Special Steels 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															12.72	16.47	16.52	19.13	25.67

Vardhman Special Steels ROCE % Calculation

Vardhman Special Steels'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 )
	=	1412.787	/	( ( (10305.188 - 3208.549)	+	(10396.689 - 2832.244) )	/ 2 )
	=	1412.787	/	( (7096.639	+	7564.445)	/ 2 )
	=	1412.787	/	7330.542
	=	19.27 %

Vardhman Special Steels'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 )
	=	1942.14	/	( ( (0 - 0)	+	(10396.689 - 2832.244) )	/ 1 )
	=	1942.14	/	( ( 0	+	7564.445 )	/ 1 )
	=	1942.14	/	7564.445
	=	25.67 %

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

Vardhman Special Steels (BOM:534392) 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.

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Vardhman Special Steels (BOM:534392) Business Description

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GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Vardhman Special Steels Ltd (BOM:534392) » Definitions » ROCE %

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VSSL:India

Address

Chandigarh Road, Vardhman Premises, Ludhiana, PB, IND, 141 010

Website

https://www.vardhmansteel.com

Vardhman Special Steels Ltd is engaged in manufacturing steel bars and rods. The company caters to diverse requirements of hot-rolled bars for Engineering, Automotive, Tractor, Bearing and Allied Industries. Its products include Carbon steel, Carbon manganese steel, Chrome steel, Chrome manganese steel, Chrome moly steel, Boron steel, Vanadium steel, and Ball bearing steel. The company manufactures products using techniques such as Steel melting, Rolling Mill, Heat treatment and Bright bar shop. It generates a majority of its revenue from the sale of black bars. The company's operations are mainly located within India.

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