KPIT Technologies (BOM:542651) ROCE % : 35.59% (As of Mar. 2024)

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What is KPIT Technologies 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. KPIT Technologies's annualized ROCE % for the quarter that ended in Mar. 2024 was 35.59%.

KPIT Technologies ROCE % Historical Data

The historical data trend for KPIT Technologies'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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KPIT Technologies ROCE % Chart

KPIT Technologies Annual Data

Trend

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROCE %

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17.83

14.86

23.72

27.41

35.00

KPIT Technologies 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															26.31	34.10	34.14	38.56	35.59

KPIT Technologies ROCE % Calculation

KPIT Technologies'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 )
	=	8552.64	/	( ( (34005.75 - 11680.54)	+	(41678.96 - 15125.89) )	/ 2 )
	=	8552.64	/	( (22325.21	+	26553.07)	/ 2 )
	=	8552.64	/	24439.14
	=	35.00 %

KPIT Technologies'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 )
	=	9451	/	( ( (0 - 0)	+	(41678.96 - 15125.89) )	/ 1 )
	=	9451	/	( ( 0	+	26553.07 )	/ 1 )
	=	9451	/	26553.07
	=	35.59 %

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

KPIT Technologies (BOM:542651) 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.

KPIT Technologies ROCE % Related Terms

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KPIT Technologies (BOM:542651) Business Description

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GURUFOCUS.COM » STOCK LIST » Technology » Software » KPIT Technologies Ltd (BOM:542651) » Definitions » ROCE %

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KPITTECH:India

Address

Plot No. 17, Rajiv Gandhi lnfotech Park, MIDC-SEZ, Phase-Ill, Maan, Taluka- Mulshi, Hinjawadi, Pune, MH, IND, 411057

Website

https://www.kpit.com

KPIT Technologies Ltd is a global technology company specializing in providing IT Consulting and Product Engineering solutions and services to Automotive, Manufacturing, Energy, and Utilities companies. The Company derives revenues primarily from providing engineering services which includes design engineering services, embedded software development with its related services and from the sale of licenses and products. Geographically, it derives a majority of revenue from the Americas.

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