REI Agro (LSE:REA) ROCE %: 11.39% (As of Mar. 2014)


What is REI Agro ROCE %?

REI Agro LSE:REA ROCE % is 11.39% as of Mar. 2014.

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. REI Agro's annualized ROCE % for the quarter that ended in Mar. 2014 was 11.39%.

REI Agro  (LSE:REA) 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.

REI Agro ROCE % Related Terms

REI Agro ROCE % Historical Data

* Premium members only.

The historical data trend for REI Agro'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.

REI Agro ROCE % Chart

REI Agro Annual Data
Trend Mar05 Mar06 Mar07 Mar08 Mar09 Mar10 Mar11 Mar12 Mar13 Mar14
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 13.31 17.46 23.96 28.73 22.07

REI Agro Quarterly Data
Mar04 Mar05 Mar06 Mar07 Mar08 Mar09 Mar10 Mar11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Dec13 Mar14
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 39.22 39.17 26.24 0.00 11.39

REI Agro ROCE % Calculation

REI Agro's annualized ROCE % for the fiscal year that ended in Mar. 2014 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Mar. 2014 )  (A: Mar. 2013 )(A: Mar. 2014 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Mar. 2014 )  (A: Mar. 2013 )(A: Mar. 2014 )
=188.025/( ( (2002.339 - 1059.706) + (1986.782 - 1225.878) )/ 2 )
=188.025/( (942.633+760.904)/ 2 )
=188.025/851.7685
=22.07 %

REI Agro's ROCE % of for the quarter that ended in Mar. 2014 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Mar. 2014 )  (Q: Dec. 2013 )(Q: Mar. 2014 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Mar. 2014 )  (Q: Dec. 2013 )(Q: Mar. 2014 )
=86.704/( ( (0 - 0) + (1986.782 - 1225.878) )/ 1 )
=86.704/( ( 0 + 760.904 )/ 1 )
=86.704/760.904
=11.39 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2014) 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 11.39% mean?
REI Agro (LSE:REA) has a ROCE % of 11.39% as of Mar. 2014.
Is REI Agro's ROCE % too high?
REI Agro's current ROCE % is 11.39%. The Consumer Packaged Goods industry median ROCE % is 8.78. REI Agro's value of 11.39% is 29.8% above this industry median.
How does REI Agro's ROCE % compare to competitors?
REI Agro's ROCE % of 11.39% can be compared against companies in the Consumer Packaged Goods industry. The industry median ROCE % is 8.78. REI Agro's value of 11.39% is 29.8% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Consumer Packaged Goods company?
The median ROCE % among Consumer Packaged Goods companies is 8.78, based on 1,938 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. REI Agro's current ROCE % of 11.39% is 29.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Consumer Packaged Goods industry, the median ROCE % is 8.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. REI Agro's current ROCE % is 11.39%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is REI Agro stock overvalued right now?
REI Agro (LSE:REA) has a current ROCE % of 11.39%. The current ROCE % is 11.39% and 29.8% above the Consumer Packaged Goods industry median of 8.78. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For REI Agro (LSE:REA), the current ROCE % is 11.39% as of Mar. 2014. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

REI Agro Business Description

Address 58A/1, Sainik Farm, Saket, New Delhi, IND, 110062
REI Agro Ltd is engaged in processing basmati rice and market its products under the brand name Raindrops. The company operates in two business segments - the business of processing, trading, and marketing of agro products and generation of power through Wind farm generators. The products of the company are sold both in domestic and international markets.