Fairchem Organics (BOM:543252) ROCE % : 7.10% (As of Dec. 2024)

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What is Fairchem Organics 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. Fairchem Organics's annualized ROCE % for the quarter that ended in Dec. 2024 was 7.10%.

Fairchem Organics ROCE % Historical Data

The historical data trend for Fairchem Organics'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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Fairchem Organics ROCE % Chart

Fairchem Organics Annual Data

Trend

Mar20

Mar21

Mar22

Mar23

Mar24

ROCE %

31.44

34.39

42.23

24.37

20.15

Fairchem Organics Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
ROCE %	Get a 7-Day Free Trial															24.87	21.40	25.21	8.18	7.10

Fairchem Organics ROCE % Calculation

Fairchem Organics'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 )
	=	588.353	/	( ( (3424.08 - 667.75)	+	(3343.094 - 260.652) )	/ 2 )
	=	588.353	/	( (2756.33	+	3082.442)	/ 2 )
	=	588.353	/	2919.386
	=	20.15 %

Fairchem Organics's ROCE % of for the quarter that ended in Dec. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2024 )		(Q: Sep. 2024 )		(Q: Dec. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2024 )		(Q: Sep. 2024 )		(Q: Dec. 2024 )
	=	225.692	/	( ( (3826.321 - 649.691)	+	(0 - 0) )	/ 1 )
	=	225.692	/	( ( 3176.63	+	0 )	/ 1 )
	=	225.692	/	3176.63
	=	7.10 %

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

Fairchem Organics (BOM:543252) 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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Fairchem Organics Business Description

Industry

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Traded in Other Exchanges

FAIRCHEMOR:India

Address

253/P and 312, Chekhala, Sanand-Kadi Highway, Taluka Sanand, Ahmedabad, GJ, IND, 382 115

Website

https://www.fairchem.in

Fairchem Organics Ltd is a manufacturer of specialty chemical products. Its product category includes Aroma Chemicals; Nutraceuticals and Oleochemicals. Some of them include Alpha Damascone; Amber Fleur; Gamma Methyl Ionone; Tetrahydromyrcenol; Natural Concentrated Sterols; Distilled Fatty Acid and others.

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