Northern Arc Capital (BOM:544260) ROCE % : 7.81% (As of Sep. 2024)

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What is Northern Arc Capital 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. Northern Arc Capital's annualized ROCE % for the quarter that ended in Sep. 2024 was 7.81%.

Northern Arc Capital ROCE % Historical Data

The historical data trend for Northern Arc Capital'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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Northern Arc Capital ROCE % Chart

Northern Arc Capital Annual Data

Trend

Mar21

Mar22

Mar23

Mar24

ROCE %

2.73

5.78

5.92

7.08

Northern Arc Capital Semi-Annual Data
	Mar21	Mar22	Mar23	Sep23	Mar24	Sep24
ROCE %	Get a 7-Day Free Trial			-	-	6.27	7.60	7.81

Northern Arc Capital ROCE % Calculation

Northern Arc Capital'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 )
	=	4219.86	/	( ( (93715.72 - 33976.19)	+	(117076.59 - 57683.97) )	/ 2 )
	=	4219.86	/	( (59739.53	+	59392.62)	/ 2 )
	=	4219.86	/	59566.075
	=	7.08 %

Northern Arc Capital'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: Mar. 2024 )		(Q: Sep. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2024 )		(Q: Mar. 2024 )		(Q: Sep. 2024 )
	=	7295.046	/	( ( (117076.59 - 57683.97)	+	(129363.375 - 1936.865) )	/ 2 )
	=	7295.046	/	( ( 59392.62	+	127426.51 )	/ 2 )
	=	7295.046	/	93409.565
	=	7.81 %

(1) Note: The EBIT data used here is two times the semi-annual (Sep. 2024) EBIT data.

Northern Arc Capital (BOM:544260) 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.

Northern Arc Capital ROCE % Related Terms

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Northern Arc Capital Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » Northern Arc Capital Ltd (BOM:544260) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

NORTHARC:India

Address

No. 1, Phase- I, 10th Floor, IITM Research Park, No. 1, Kanagam Village, Taramani, Chennai, TN, IND, 600113

Website

https://www.northernarc.com

Northern Arc Capital Ltd is a platform in the financial services sector set up to cater to the credit requirements of households and businesses by providing access to debt finance. The Company's operations predominantly relate to arranging, facilitating, and providing finance either in the form of loans, investments, or guarantees. The Company has four reportable segments Financing activity, Investment advisory services, Investment management services, and Portfolio Management services. The company derives maximum revenue from the Financing activity.

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