Happy Forgings (BOM:544057) ROCE % : 20.39% (As of Dec. 2024)

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What is Happy Forgings 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. Happy Forgings's annualized ROCE % for the quarter that ended in Dec. 2024 was 20.39%.

Happy Forgings ROCE % Historical Data

The historical data trend for Happy Forgings'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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Happy Forgings ROCE % Chart

Happy Forgings Annual Data

Trend

Mar21

Mar22

Mar23

Mar24

ROCE %

18.44

25.11

29.88

24.72

Happy Forgings Quarterly Data
	Mar21	Mar22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
ROCE %	Get a 7-Day Free Trial							27.92	21.30	21.21	22.64	20.39

Happy Forgings ROCE % Calculation

Happy Forgings'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 )
	=	3353.979	/	( ( (13261.614 - 2566.434)	+	(18859.51 - 2418.405) )	/ 2 )
	=	3353.979	/	( (10695.18	+	16441.105)	/ 2 )
	=	3353.979	/	13568.1425
	=	24.72 %

Happy Forgings'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 )
	=	3558.696	/	( ( (20198.988 - 2748.06)	+	(0 - 0) )	/ 1 )
	=	3558.696	/	( ( 17450.928	+	0 )	/ 1 )
	=	3558.696	/	17450.928
	=	20.39 %

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

Happy Forgings (BOM:544057) 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.

Happy Forgings ROCE % Related Terms

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Happy Forgings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Happy Forgings Ltd (BOM:544057) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

HAPPYFORGE:India

Address

H.B 220, Post Office - Rajgarh, Village Dugri, Ludhiana, PB, IND, 141 421

Website

https://www.happyforgingsltd.com

Happy Forgings Ltd is a manufacturer specializing in designing and manufacturing heavy forgings and high-precision machined components. The company manufactures, designs, and tests various products such as crankshafts, front axle carriers, steering knuckles, differential housings, transmission parts, pinion shafts, suspension products, and valve bodies for different industries and customers. The Company business comprises only the Forging segment where the company sells forged products comprising of forgings and machined components for the automotive and industrial sectors. The company generates the majority of its revenue within India.

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