Varroc Engineering (BOM:541578) ROCE % : 16.73% (As of Jun. 2024)

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What is Varroc Engineering 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. Varroc Engineering's annualized ROCE % for the quarter that ended in Jun. 2024 was 16.73%.

Varroc Engineering ROCE % Historical Data

The historical data trend for Varroc Engineering'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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Varroc Engineering ROCE % Chart

Varroc Engineering Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROCE %

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3.50

4.23

2.15

12.23

24.08

Varroc Engineering Quarterly Data
	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24
ROCE %	Get a 7-Day Free Trial															26.14	25.68	24.88	23.44	16.73

Varroc Engineering ROCE % Calculation

Varroc Engineering'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 )
	=	4993.79	/	( ( (46209.02 - 28743.21)	+	(45604.73 - 21587.4) )	/ 2 )
	=	4993.79	/	( (17465.81	+	24017.33)	/ 2 )
	=	4993.79	/	20741.57
	=	24.08 %

Varroc Engineering's ROCE % of for the quarter that ended in Jun. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Jun. 2024 )		(Q: Mar. 2024 )		(Q: Jun. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jun. 2024 )		(Q: Mar. 2024 )		(Q: Jun. 2024 )
	=	4017.52	/	( ( (45604.73 - 21587.4)	+	(0 - 0) )	/ 1 )
	=	4017.52	/	( ( 24017.33	+	0 )	/ 1 )
	=	4017.52	/	24017.33
	=	16.73 %

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

Varroc Engineering (BOM:541578) 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.

Varroc Engineering ROCE % Related Terms

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Varroc Engineering Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Varroc Engineering Ltd (BOM:541578) » Definitions » ROCE %

Traded in Other Exchanges

VARROC:India

Address

Plot No. L-4, MIDC Industrial Area, Waluj, Aurangabad, MH, IND, 431136

Website

https://www.varroc.com

Varroc Engineering Ltd is an India based company engaged in manufacturing and supplying components and subassemblies for automobile, consumer durable, and white goods industries. The company's operating segment includes Automotive and Others. It generates maximum revenue from the Automotive segment. The company also designs, manufactures, and supply exterior lighting systems, plastic and polymer components, electricals-electronics components, and precision metallic components to a passenger car, commercial vehicle, two-wheeler, three-wheeler and off-highway vehicle. Geographically, it derives a majority of revenue from Europe and also has a presence in the Asia Pacific; North America, and Other Countries.

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