Royal Arc Electrodes (NSE:ROYALARC) Asset Turnover: 0.74 (As of Mar. 2026)


NSE:ROYALARC Royal Arc Electrodes Ltd NSE:ROYALARC
19 GF Score
Price ₹146.05
! 4 Warning Signs
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What is Royal Arc Electrodes Asset Turnover?

Royal Arc Electrodes NSE:ROYALARC 19 Asset Turnover is 0.74 as of Mar. 2026. GuruFocus rates NSE:ROYALARC with a GF Score™ of 19/100. The stock has 4 warning signs investors should review.

Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. Royal Arc Electrodes's Revenue for the six months ended in Mar. 2026 was ₹632.2 Mil. Royal Arc Electrodes's Total Assets for the quarter that ended in Mar. 2026 was ₹860.4 Mil. Therefore, Royal Arc Electrodes's Asset Turnover for the quarter that ended in Mar. 2026 was 0.74.

Asset Turnover is linked to ROE % through Du Pont Formula. Royal Arc Electrodes's annualized ROE % for the quarter that ended in Mar. 2026 was 14.98%. It is also linked to ROA % through Du Pont Formula. Royal Arc Electrodes's annualized ROA % for the quarter that ended in Mar. 2026 was 13.32%.

Royal Arc Electrodes  (NSE:ROYALARC) Asset Turnover Explanation

Asset Turnover is linked to ROE % through Du Pont Formula.

Royal Arc Electrodes's annulized ROE % for the quarter that ended in Mar. 2026 is

ROE %**(Q: Mar. 2026 )
=Net Income/Total Stockholders Equity
=114.616/765.208
=(Net Income / Revenue)*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(114.616 / 1264.418)*(1264.418 / 860.42)*(860.42/ 765.208)
=Net Margin %*Asset Turnover*Equity Multiplier
=9.06 %*1.4695*1.1244
=ROA %*Equity Multiplier
=13.32 %*1.1244
=14.98 %

Note: The Net Income data used here is two times the semi-annual (Mar. 2026) net income data. The Revenue data used here is two times the semi-annual (Mar. 2026) revenue 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.

** The ROE % used above is for Du Pont Analysis only. It is different from the defined ROE % page on our website, as here it uses Net Income instead of Net Income attributable to Common Stockholders in the calculation.

It is also linked to ROA % through Du Pont Formula:

Royal Arc Electrodes's annulized ROA % for the quarter that ended in Mar. 2026 is

ROA %(Q: Mar. 2026 )
=Net Income/Total Assets
=114.616/860.42
=(Net Income / Revenue)*(Revenue / Total Assets)
=(114.616 / 1264.418)*(1264.418 / 860.42)
=Net Margin %*Asset Turnover
=9.06 %*1.4695
=13.32 %

Note: The Net Income data used here is two times the semi-annual (Mar. 2026) net income data. The Revenue data used here is two times the semi-annual (Mar. 2026) revenue 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.

Be Aware

In the article Joining The Dark Side: Pirates, Spies and Short Sellers, James Montier reported that In their US sample covering the period 1968-2003, Cooper et al find that firms with low asset growth outperformed firms with high asset growth by an astounding 20% p.a. equally weighted. Even when controlling for market, size and style, low asset growth firms outperformed high asset growth firms by 13% p.a. Therefore a company with fast asset growth may underperform.

Therefore, it is a good sign if a company's Asset Turnover is consistent or even increases. If a company's asset grows faster than sales, its Asset Turnover will decline, which can be a warning sign.

Royal Arc Electrodes Asset Turnover Related Terms

Royal Arc Electrodes Asset Turnover Historical Data

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The historical data trend for Royal Arc Electrodes's Asset Turnover 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.

Royal Arc Electrodes Asset Turnover Chart

Royal Arc Electrodes Annual Data
Trend Mar22 Mar23 Mar24 Mar25 Mar26
Asset Turnover
1.48 2.25 2.08 1.53 1.35

Royal Arc Electrodes Semi-Annual Data
Mar22 Mar23 Mar24 Sep24 Mar25 Mar26
Asset Turnover Get a 7-Day Free Trial 0.00 0.00 0.85 0.82 0.74

NSE:ROYALARC vs VRT, BE: Asset Turnover Comparison

For the Electrical Equipment & Parts subindustry, Royal Arc Electrodes's Asset Turnover, along with its competitors' market caps and Asset Turnover data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Royal Arc Electrodes Asset Turnover vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, Royal Arc Electrodes's Asset Turnover distribution charts can be found below:

* The bar in red indicates where Royal Arc Electrodes's Asset Turnover falls into.


NSE:ROYALARC
19GF Score
Royal Arc Electrodes Ltd NSE:ROYALARC
Asset Turnover is just one metric. See GF Score™, valuation, warning signs, and more.
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Royal Arc Electrodes Asset Turnover Calculation

Asset Turnover measures how quickly a company turns over its asset through sales.

Royal Arc Electrodes's Asset Turnover for the fiscal year that ended in Mar. 2026 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (A: Mar. 2026 )/( (Total Assets (A: Mar. 2025 )+Total Assets (A: Mar. 2026 ))/ count )
=1160.6/( (808.528+912.312)/ 2 )
=1160.6/860.42
=1.35

Royal Arc Electrodes's Asset Turnover for the quarter that ended in Mar. 2026 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (Q: Mar. 2026 )/( (Total Assets (Q: Mar. 2025 )+Total Assets (Q: Mar. 2026 ))/ count )
=632.209/( (808.528+912.312)/ 2 )
=632.209/860.42
=0.73

* 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.

Companies with low profit margins tend to have high Asset Turnover, while those with high profit margins have low Asset Turnover. Companies in the retail industry tend to have a very high turnover ratio.

Frequently Asked Questions Learn more about Asset Turnover →
What does a Asset Turnover of 0.74 mean?
Royal Arc Electrodes (NSE:ROYALARC) has a Asset Turnover of 0.74 as of Mar. 2026. Asset turnover equals current-period sales over average total assets over the past two periods. View historical data on Royal Arc Electrodes and its competitors.
Is Royal Arc Electrodes' Asset Turnover too high?
Royal Arc Electrodes' current Asset Turnover is 0.74. Overall, Royal Arc Electrodes has a GF Score™ of 19/100, reflecting its overall financial health beyond just this single metric.
How does Royal Arc Electrodes' Asset Turnover compare to VRT and BE?
Royal Arc Electrodes' Asset Turnover of 0.74 can be compared against companies in the Industrial Products industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Asset Turnover for an Industrial Products company?
A good Asset Turnover depends on the Industrial Products industry context. However, Asset Turnover should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Asset Turnover mean?
A high Asset Turnover can signal that a stock is expensive relative to its fundamentals. Asset turnover equals current-period sales over average total assets over the past two periods. View historical data on Royal Arc Electrodes and its competitors. Royal Arc Electrodes's current Asset Turnover is 0.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Royal Arc Electrodes stock overvalued right now?
Royal Arc Electrodes (NSE:ROYALARC) has a current Asset Turnover of 0.74. The current Asset Turnover is 0.74. Royal Arc Electrodes' overall GF Score™ is 19/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Asset Turnover calculated?
Asset Turnover is calculated from a company's financial statements. For Royal Arc Electrodes (NSE:ROYALARC), the current Asset Turnover is 0.74 as of Mar. 2026. 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.

Royal Arc Electrodes Business Description

Address S.V. Road, 72 B, Bombay Talkies Compound, Malad West, Mumbai, MH, IND, 400064
Royal Arc Electrodes Ltd is engaged in the business of manufacturing welding consumables such as welding electrodes, flux cored wire, MIG/TIG wires, which finds its application in the welding of tanks, boilers, heavy structures, beams, pipes, cylinders, pressure vessels, etc. which are used in industries like railways, roadways, airport infrastructure, refineries, shipyards, mines, sugar industries, telecom industries, thermal power stations, PEB sectors, etc. Further, the Company is also engaged in the business of trading ancillary/incidental products like wheels, electro slag, welding flux cored wire, electro slag strip cladding, saw flux, and TIG /MIG wires. It manufactures its products from copper coated wire, MS Strips, MS wire, SS strip, SS wire, nickel wire, ferro alloy powder, etc.
19GF Score

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Asset Turnover is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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