Indian Railway Finance (BOM:543257) ROCE % : 1.30% (As of Dec. 2023)

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What is Indian Railway Finance 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. Indian Railway Finance's annualized ROCE % for the quarter that ended in Dec. 2023 was 1.30%.

Indian Railway Finance ROCE % Historical Data

The historical data trend for Indian Railway Finance'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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Indian Railway Finance ROCE % Chart

Indian Railway Finance Annual Data

Trend

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROCE %

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5.61

4.43

3.53

3.05

2.68

Indian Railway Finance Quarterly Data
	Mar18	Mar19	Sep19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %	Get a 7-Day Free Trial														1.45	5.66	1.33	1.26	1.30

Indian Railway Finance ROCE % Calculation

Indian Railway Finance'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 )
	=	114511.53	/	( ( (4499802.24 - 356708.04)	+	(4911467.48 - 497107.95) )	/ 2 )
	=	114511.53	/	( (4143094.2	+	4414359.53)	/ 2 )
	=	114511.53	/	4278726.865
	=	2.68 %

Indian Railway Finance'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 )
	=	64051.4	/	( ( (4970140.65 - 115.12)	+	(4878894.14 - 113.15) )	/ 2 )
	=	64051.4	/	( ( 4970025.53	+	4878780.99 )	/ 2 )
	=	64051.4	/	4924403.26
	=	1.30 %

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

Indian Railway Finance (BOM:543257) 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.

Indian Railway Finance ROCE % Related Terms

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Indian Railway Finance (BOM:543257) Business Description

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GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » Indian Railway Finance Corp Ltd (BOM:543257) » Definitions » ROCE %

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IRFC:India

Address

Bhisham Pitamah Marg, Lodhi Road, UG Floor, East Tower, NBCC Place, Pragati Vihar, New Delhi, IND, 110003

Website

https://irfc.co.in

Indian Railway Finance Corp Ltd is engaged in the business of borrowing funds from the financial markets to finance the acquisition/creation of assets which are then leased out to the Indian Railways or any entity under the Ministry of Railways. Its only operating segment being Leasing and Finance. The company generates maximum revenue from Lease Income.

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