Lakshmi Machine Works (BOM:500252) ROCE % : 11.56% (As of Mar. 2024)

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What is Lakshmi Machine Works 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. Lakshmi Machine Works's annualized ROCE % for the quarter that ended in Mar. 2024 was 11.56%.

Lakshmi Machine Works ROCE % Historical Data

The historical data trend for Lakshmi Machine Works'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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Lakshmi Machine Works ROCE % Chart

Lakshmi Machine Works Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROCE %

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2.70

0.81

8.55

20.12

16.93

Lakshmi Machine Works Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Sep23	Dec23	Mar24
ROCE %	Get a 7-Day Free Trial															21.23	21.23	21.28	17.92	11.56

Lakshmi Machine Works ROCE % Calculation

Lakshmi Machine Works'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 )
	=	4821.6	/	( ( (40900.593 - 13688.627)	+	(40314.2 - 10577.5) )	/ 2 )
	=	4821.6	/	( (27211.966	+	29736.7)	/ 2 )
	=	4821.6	/	28474.333
	=	16.93 %

Lakshmi Machine Works'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 )
	=	3436.8	/	( ( (0 - 0)	+	(40314.2 - 10577.5) )	/ 1 )
	=	3436.8	/	( ( 0	+	29736.7 )	/ 1 )
	=	3436.8	/	29736.7
	=	11.56 %

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

Lakshmi Machine Works (BOM:500252) 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.

Lakshmi Machine Works ROCE % Related Terms

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Lakshmi Machine Works (BOM:500252) Business Description

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GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Lakshmi Machine Works Ltd (BOM:500252) » Definitions » ROCE %

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LAXMIMACH:India

Address

34-A, Kamaraj Road, Coimbatore, TN, IND, 641018

Website

https://www.lmwglobal.com

Lakshmi Machine Works Ltd is a machinery maker. The company is organized into three primary segments: a textile machinery division, a machine tool/foundry division, and an advanced technology center for aerospace parts and components. The company's textile machinery products include card sliver systems, combing systems, ring spinning systems, and related components. The company's machine tool products include CNC lathes, machining centers, and other high-tech machine tools. The company's foundry division manufactures ductile and grey iron castings. In addition, the company manufactures structural parts, engine and landing gear parts, sheet metal fabrications, and so on. It generates almost all of its revenue from the Indian domestic market.

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