Riddhi Steel and Tube (BOM:540082) ROCE % : 17.79% (As of Sep. 2023)

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What is Riddhi Steel and Tube 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. Riddhi Steel and Tube's annualized ROCE % for the quarter that ended in Sep. 2023 was 17.79%.

Riddhi Steel and Tube ROCE % Historical Data

The historical data trend for Riddhi Steel and Tube'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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Riddhi Steel and Tube ROCE % Chart

Riddhi Steel and Tube Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROCE %

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19.87

15.68

12.40

13.57

16.11

Riddhi Steel and Tube Semi-Annual Data
	Mar12	Mar13	Mar14	Mar15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
ROCE %	Get a 7-Day Free Trial															14.97	13.78	15.65	16.77	17.79

Riddhi Steel and Tube ROCE % Calculation

Riddhi Steel and Tube's annualized ROCE % for the fiscal year that ended in Mar. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Mar. 2023 )		(A: Mar. 2022 )		(A: Mar. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Mar. 2023 )		(A: Mar. 2022 )		(A: Mar. 2023 )
	=	161.826	/	( ( (1904.257 - 866.854)	+	(1831.204 - 859.251) )	/ 2 )
	=	161.826	/	( (1037.403	+	971.953)	/ 2 )
	=	161.826	/	1004.678
	=	16.11 %

Riddhi Steel and Tube's ROCE % of for the quarter that ended in Sep. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2023 )		(Q: Mar. 2023 )		(Q: Sep. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2023 )		(Q: Mar. 2023 )		(Q: Sep. 2023 )
	=	179.008	/	( ( (1831.204 - 859.251)	+	(1759.595 - 719.326) )	/ 2 )
	=	179.008	/	( ( 971.953	+	1040.269 )	/ 2 )
	=	179.008	/	1006.111
	=	17.79 %

(1) Note: The EBIT data used here is two times the semi-annual (Sep. 2023) EBIT data.

Riddhi Steel and Tube (BOM:540082) 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.

Riddhi Steel and Tube ROCE % Related Terms

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Riddhi Steel and Tube (BOM:540082) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Riddhi Steel and Tube Ltd (BOM:540082) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Piplaj Pirana Road, 83/84, Village - Kamod, Post- Aslali, Ahmedabad, GJ, IND, 382427

Website

https://www.riddhitubes.com

Riddhi Steel and Tube Ltd is engaged in manufacturing and galvanized steel pipes in various sizes, tubes, and hollow profiles and of tube and pipe fittings of cast iron or cast steel. The product line of the company includes MS ERW Black and Galvanised Pipes which are used in agriculture, industry and construction activities like scaffolding and casing in bore wells; Square and Rectangular Hollow Section used in engineering application; Pre-Galvanised Pipes used by various manufacturers.

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