Aarti Pharmalabs (BOM:543748) ROCE % : 21.28% (As of Mar. 2024)

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What is Aarti Pharmalabs 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. Aarti Pharmalabs's annualized ROCE % for the quarter that ended in Mar. 2024 was 21.28%.

Aarti Pharmalabs ROCE % Historical Data

The historical data trend for Aarti Pharmalabs'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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Aarti Pharmalabs ROCE % Chart

Aarti Pharmalabs Annual Data

Trend

Mar21

Mar22

Mar23

Mar24

ROCE %

-2.02

21.34

18.19

18.01

Aarti Pharmalabs Quarterly Data
	Mar21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROCE %	Get a 7-Day Free Trial					15.90	16.63	16.15	17.86	21.28

Aarti Pharmalabs ROCE % Calculation

Aarti Pharmalabs'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 )
	=	3177	/	( ( (22309.272 - 5915.68)	+	(25821 - 6943.9) )	/ 2 )
	=	3177	/	( (16393.592	+	18877.1)	/ 2 )
	=	3177	/	17635.346
	=	18.01 %

Aarti Pharmalabs'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 )
	=	4016.8	/	( ( (0 - 0)	+	(25821 - 6943.9) )	/ 1 )
	=	4016.8	/	( ( 0	+	18877.1 )	/ 1 )
	=	4016.8	/	18877.1
	=	21.28 %

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

Aarti Pharmalabs (BOM:543748) 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.

Aarti Pharmalabs ROCE % Related Terms

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Aarti Pharmalabs (BOM:543748) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Aarti Pharmalabs Ltd (BOM:543748) » Definitions » ROCE %

Traded in Other Exchanges

AARTIPHARM:India

Address

204, Udyog Kshetra, Mulund Goregaon Link Road, 2nd floor,, Mulund West, Mumbai, MH, IND, 400080

Website

https://www.aartipharmalabs.com

Aarti Pharmalabs Ltd manufactures pharmaceuticals and nutraceuticals with a footprint. It manufactures Active Pharmaceutical Ingredients (API), pharmaceutical intermediates, New Chemical Entities (NCE), and xanthine derivatives.

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