HCL Technologies (NSE:HCLTECH) ROCE % : 28.24% (As of Mar. 2024)

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What is HCL Technologies 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. HCL Technologies's annualized ROCE % for the quarter that ended in Mar. 2024 was 28.24%.

HCL Technologies ROCE % Historical Data

The historical data trend for HCL Technologies'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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HCL Technologies ROCE % Chart

HCL Technologies Annual Data

Trend

Jun14

Jun15

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROCE %

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27.35

25.36

24.84

27.90

28.88

HCL Technologies Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROCE %	Get a 7-Day Free Trial															29.23	26.57	29.00	33.00	28.24

HCL Technologies ROCE % Calculation

HCL Technologies'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 )
	=	215200	/	( ( (934110 - 214310)	+	(997770 - 227260) )	/ 2 )
	=	215200	/	( (719800	+	770510)	/ 2 )
	=	215200	/	745155
	=	28.88 %

HCL Technologies'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 )
	=	217600	/	( ( (0 - 0)	+	(997770 - 227260) )	/ 1 )
	=	217600	/	( ( 0	+	770510 )	/ 1 )
	=	217600	/	770510
	=	28.24 %

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

HCL Technologies (NSE:HCLTECH) 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.

HCL Technologies ROCE % Related Terms

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HCL Technologies (NSE:HCLTECH) Business Description

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GURUFOCUS.COM » STOCK LIST » Technology » Software » HCL Technologies Ltd (NSE:HCLTECH) » Definitions » ROCE %

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532281:India

Address

Technology Hub, Special Economic Zone, Plot No. 3A, Sector 126, Noida, UP, IND, 201 304

Website

https://www.hcltech.com

HCL Technologies Ltd provides enterprises with IT solutions in India. It focuses on offering Digital, Internet of Things Services, Cloud, Automation, Cybersecurity, Infrastructure Management, and Engineering Services to solve business problems for clients. While the company is based in India, it has international clients in a large number of countries. It offers solutions to a variety of industries including Financial Services, Public Services, Consumer Services, Healthcare, and Manufacturing. It operates in three segments IT and Business Services, Engineering and R&D Services, and Products and Platforms. The firm emphasizes consultation services for firms, with the goal to offer them digital and design solutions. Most of the firm's revenue comes from IT and Business Services segment.

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