Sofcom Systems (BOM:538923) ROCE % : 7.43% (As of Dec. 2023)

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What is Sofcom Systems 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. Sofcom Systems's annualized ROCE % for the quarter that ended in Dec. 2023 was 7.43%.

Sofcom Systems ROCE % Historical Data

The historical data trend for Sofcom Systems'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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Sofcom Systems ROCE % Chart

Sofcom Systems Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROCE %

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-2.36

-2.29

-7.29

-8.67

60.20

Sofcom Systems Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %	Get a 7-Day Free Trial															23.98	-0.34	8.27	5.96	7.43

Sofcom Systems ROCE % Calculation

Sofcom Systems's annualized ROCE % for the fiscal year that ended in Mar. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Mar. 2023 )		(A: Mar. 2022 )		(A: Mar. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Mar. 2023 )		(A: Mar. 2022 )		(A: Mar. 2023 )
	=	24.914	/	( ( (65.212 - 34.297)	+	(52.289 - 0.43) )	/ 2 )
	=	24.914	/	( (30.915	+	51.859)	/ 2 )
	=	24.914	/	41.387
	=	60.20 %

Sofcom Systems's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	3.992	/	( ( (54.242 - 0.495)	+	(0 - 0) )	/ 1 )
	=	3.992	/	( ( 53.747	+	0 )	/ 1 )
	=	3.992	/	53.747
	=	7.43 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

Sofcom Systems (BOM:538923) 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.

Sofcom Systems ROCE % Related Terms

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Sofcom Systems (BOM:538923) Business Description

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GURUFOCUS.COM » STOCK LIST » Technology » Software » Sofcom Systems Ltd (BOM:538923) » Definitions » ROCE %

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Address

D-36, Subhash Marg, Flat No. 802 Sheel Mohar Apartment, C-Scheme, Jaipur, RJ, IND, 302001

Website

http://www.sofcomsystems.com

Sofcom Systems Ltd provides consultancy for software development in the form of services, turnkey projects, and products for the domestic and export market. The software development is targeted towards the distribution, banking, telecommunication, and manufacturing sectors. It also offers software maintenance, reengineering, and downsizing of software applications in these market segments. The company is providing information technology solutions to both commercial and government clients. The Company is engaged in the trading of Software & other items and providing software consultancy in India. The Company derives revenues from sale of software and consultancy.

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