GHCL Textiles (NSE:GHCLTEXTIL) ROCE % : 4.32% (As of Mar. 2024)

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What is GHCL Textiles 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. GHCL Textiles's annualized ROCE % for the quarter that ended in Mar. 2024 was 4.32%.

GHCL Textiles ROCE % Historical Data

The historical data trend for GHCL Textiles'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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GHCL Textiles ROCE % Chart

GHCL Textiles Annual Data

Trend

Mar23

Mar24

ROCE %

2.71

GHCL Textiles Quarterly Data
	Jun22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROCE %	Get a 7-Day Free Trial			-	-	2.64	2.06	4.32

GHCL Textiles ROCE % Calculation

GHCL Textiles'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 )
	=	419	/	( ( (0 - 0)	+	(16328.6 - 894.1) )	/ 1 )
	=	419	/	( (0	+	15434.5)	/ 1 )
	=	419	/	15434.5
	=	2.71 %

GHCL Textiles'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 )
	=	666.4	/	( ( (0 - 0)	+	(16328.6 - 894.1) )	/ 1 )
	=	666.4	/	( ( 0	+	15434.5 )	/ 1 )
	=	666.4	/	15434.5
	=	4.32 %

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

GHCL Textiles (NSE:GHCLTEXTIL) 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.

GHCL Textiles ROCE % Related Terms

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GHCL Textiles (NSE:GHCLTEXTIL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » GHCL Textiles Ltd (NSE:GHCLTEXTIL) » Definitions » ROCE %

Traded in Other Exchanges

543918:India

Address

B-38, Institutional Area, GHCL House, Sector-1, Navrangpura, Noida, UP, IND, 201301

Website

https://www.ghcltextiles.co.in

GHCL Textiles Ltd is engaged in the manufacturing of wearing apparel.

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