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Forbes Precision Tools and Machine Parts (BOM:544186) ROCE % : 25.76% (As of Sep. 2024)


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What is Forbes Precision Tools and Machine Parts 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. Forbes Precision Tools and Machine Parts's annualized ROCE % for the quarter that ended in Sep. 2024 was 25.76%.

Forbes Precision Tools and Machine Parts ROCE % Historical Data

The historical data trend for Forbes Precision Tools and Machine Parts'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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Forbes Precision Tools and Machine Parts ROCE % Chart

Forbes Precision Tools and Machine Parts Annual Data
Trend Mar23 Mar24
ROCE %
-30.89 53.99

Forbes Precision Tools and Machine Parts Quarterly Data
Mar23 Jun23 Sep23 Mar24 Jun24 Sep24
ROCE % Get a 7-Day Free Trial 57,591.62 - - 17.82 25.76

Forbes Precision Tools and Machine Parts ROCE % Calculation

Forbes Precision Tools and Machine Parts'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 )
=409.757/( ( (0.507 - 0.125) + (2025.965 - 508.469) )/ 2 )
=409.757/( (0.382+1517.496)/ 2 )
=409.757/758.939
=53.99 %

Forbes Precision Tools and Machine Parts's ROCE % of for the quarter that ended in Sep. 2024 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Sep. 2024 )  (Q: Jun. 2024 )(Q: Sep. 2024 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Sep. 2024 )  (Q: Jun. 2024 )(Q: Sep. 2024 )
=403.6/( ( (0 - 0) + (2032.6 - 466.1) )/ 1 )
=403.6/( ( 0 + 1566.5 )/ 1 )
=403.6/1566.5
=25.76 %

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

* 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.

Forbes Precision Tools and Machine Parts  (BOM:544186) 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.

Forbes Precision Tools and Machine Parts ROCE % Related Terms

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Forbes Precision Tools and Machine Parts Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Forbes Precision Tools and Machine Parts Ltd (BOM:544186) » Definitions » ROCE %
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Traded in Other Exchanges
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Address
Charanjit Rai Marg, Forbes Building, Mumbai, MH, IND, 400001
Website
https://www.www.forbesprecision.co.in
Forbes Precision Tools and Machine Parts Ltd manufactures precision cutting tools and related components. The products offered by the company include taps, carbon and/or steel taps, drills, rotary burrs, tools, threading tools, grinding tools, measuring tools, hand tools, and precision tools. The principal geographical area in which the company operates is India.

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