Eicher Motors (NSE:EICHERMOT) ROCE % : 28.68% (As of Mar. 2024)

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What is Eicher Motors 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. Eicher Motors's annualized ROCE % for the quarter that ended in Mar. 2024 was 28.68%.

Eicher Motors ROCE % Historical Data

The historical data trend for Eicher Motors'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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Eicher Motors ROCE % Chart

Eicher Motors Annual Data

Trend

Dec14

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROCE %

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24.07

16.23

17.67

26.23

29.60

Eicher Motors Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROCE %	Get a 7-Day Free Trial															29.18	30.63	30.69	30.46	28.68

Eicher Motors ROCE % Calculation

Eicher Motors'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 )
	=	52529	/	( ( (191976.4 - 32345.8)	+	(231279.3 - 35984.1) )	/ 2 )
	=	52529	/	( (159630.6	+	195295.2)	/ 2 )
	=	52529	/	177462.9
	=	29.60 %

Eicher Motors's ROCE % of for the quarter that ended in Mar. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	56014	/	( ( (0 - 0)	+	(231279.3 - 35984.1) )	/ 1 )
	=	56014	/	( ( 0	+	195295.2 )	/ 1 )
	=	56014	/	195295.2
	=	28.68 %

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

Eicher Motors (NSE:EICHERMOT) 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.

Eicher Motors ROCE % Related Terms

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Eicher Motors (NSE:EICHERMOT) Business Description

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GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Eicher Motors Ltd (NSE:EICHERMOT) » Definitions » ROCE %

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Traded in Other Exchanges

505200:India

Address

No. 96, Sector 32, Gurugram, HR, IND, 122001

Website

https://www.eichermotors.com

Eicher Motors Ltd is an Indian automobile manufacturer. The company organizes itself into two divisions, based on product type: motorcycles, and commercial vehicles. The motorcycles division, the most significant contributor to Eicher Motors' revenue, produces motorcycles through the Royal Enfield brand. The commercial vehicles divisions, through a joint venture with Volvo, produces trucks and buses for sale in India and other developing markets. The company derives the vast majority of revenue domestically.

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