Zenith Drugs (NSE:ZENITHDRUG) ROCE % : 25.06% (As of Mar. 2024)

View and export this data going back to 2024. Start your Free Trial

What is Zenith Drugs 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. Zenith Drugs's annualized ROCE % for the quarter that ended in Mar. 2024 was 25.06%.

Zenith Drugs ROCE % Historical Data

The historical data trend for Zenith Drugs'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.

* Premium members only.

Zenith Drugs ROCE % Chart

Zenith Drugs Annual Data

Trend

Mar21

Mar22

Mar23

Mar24

ROCE %

36.24

32.93

32.33

31.79

Zenith Drugs Semi-Annual Data
	Mar21	Mar22	Mar23	Sep23	Mar24
ROCE %	-	-	-	61.20	25.06

Zenith Drugs ROCE % Calculation

Zenith Drugs'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 )
	=	154.439	/	( ( (979.249 - 716.537)	+	(1350.375 - 641.468) )	/ 2 )
	=	154.439	/	( (262.712	+	708.907)	/ 2 )
	=	154.439	/	485.8095
	=	31.79 %

Zenith Drugs'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: Sep. 2023 )		(Q: Mar. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2024 )		(Q: Sep. 2023 )		(Q: Mar. 2024 )
	=	129.386	/	( ( (1124.904 - 801.002)	+	(1350.375 - 641.468) )	/ 2 )
	=	129.386	/	( ( 323.902	+	708.907 )	/ 2 )
	=	129.386	/	516.4045
	=	25.06 %

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

Zenith Drugs (NSE:ZENITHDRUG) 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.

Zenith Drugs ROCE % Related Terms

Thank you for viewing the detailed overview of Zenith Drugs's ROCE % provided by GuruFocus.com. Please click on the following links to see related term pages.

Zenith Drugs Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Zenith Drugs Ltd (NSE:ZENITHDRUG) » Definitions » ROCE %

Traded in Other Exchanges

N/A

Address

K. No. 72 / 5, Village Muradpura, NA Depalpur, Indore, MP, IND, 453001

Website

https://www.zenithdrugs.com

Zenith Drugs Ltd is a pharmaceutical manufacturing and trading company. It offers a wide range of formulations in various forms such as ORS Powder, Liquid Orals, Ointments, Liquid Externals, and Capsules. It is also into Generic Medicines.

Zenith Drugs Headlines

No Headlines