Rama Steel Tubes (BOM:539309) ROCE % : 19.97% (As of Dec. 2023)

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What is Rama Steel Tubes 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. Rama Steel Tubes's annualized ROCE % for the quarter that ended in Dec. 2023 was 19.97%.

Rama Steel Tubes ROCE % Historical Data

The historical data trend for Rama Steel Tubes'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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Rama Steel Tubes ROCE % Chart

Rama Steel Tubes Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROCE %

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18.12

10.72

18.21

30.83

23.02

Rama Steel Tubes 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															22.97	24.86	22.60	13.60	19.97

Rama Steel Tubes ROCE % Calculation

Rama Steel Tubes'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 )
	=	525.51	/	( ( (3583.988 - 1984.325)	+	(6949.123 - 3982.412) )	/ 2 )
	=	525.51	/	( (1599.663	+	2966.711)	/ 2 )
	=	525.51	/	2283.187
	=	23.02 %

Rama Steel Tubes'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 )
	=	702.124	/	( ( (6710.897 - 3194.185)	+	(0 - 0) )	/ 1 )
	=	702.124	/	( ( 3516.712	+	0 )	/ 1 )
	=	702.124	/	3516.712
	=	19.97 %

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

Rama Steel Tubes (BOM:539309) 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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Rama Steel Tubes (BOM:539309) Business Description

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GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Rama Steel Tubes Ltd (BOM:539309) » Definitions » ROCE %

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RAMASTEEL:India

Address

Main Road, B-5, 3rd Floor, Ghazipur, New Delhi, IND, 110096

Website

https://www.ramasteel.com

Rama Steel Tubes Ltd is a manufacturer and exporter of steel pipes, steel tubes, galvanized pipes, fence pipes, electrical conduit pipes, scaffolding fittings, hollow section, square steel pipes, and square steel tubes. The firm's only segment is the manufacturing and trading of Steel Tubes Pipes and Steel allied products. It also manufactures and exports hollow section for the automobile industry, including highway and street lighting poles, as well as traffic signal poles. It operates its business across the world and generates its revenues from India.

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