ITC (NSE:ITC) ROCE % : 37.03% (As of Dec. 2023)

View and export this data going back to 1995. Start your Free Trial

What is ITC 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. ITC's annualized ROCE % for the quarter that ended in Dec. 2023 was 37.03%.

ITC ROCE % Historical Data

The historical data trend for ITC'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.

* Premium members only.

ITC ROCE % Chart

ITC Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROCE %

Get a 7-Day Free Trial

32.86

31.00

27.47

32.41

37.83

ITC Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %	Get a 7-Day Free Trial															39.83	38.22	38.53	36.86	37.03

ITC ROCE % Calculation

ITC'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 )
	=	259583.2	/	( ( (772595.5 - 121637.1)	+	(858829.8 - 137394.1) )	/ 2 )
	=	259583.2	/	( (650958.4	+	721435.7)	/ 2 )
	=	259583.2	/	686197.05
	=	37.83 %

ITC's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	267827.2	/	( ( (871370.8 - 148011.1)	+	(0 - 0) )	/ 1 )
	=	267827.2	/	( ( 723359.7	+	0 )	/ 1 )
	=	267827.2	/	723359.7
	=	37.03 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

ITC (NSE:ITC) 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.

ITC ROCE % Related Terms

Thank you for viewing the detailed overview of ITC's ROCE % provided by GuruFocus.com. Please click on the following links to see related term pages.

ITC (NSE:ITC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Tobacco Products » ITC Ltd (NSE:ITC) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

500875:India

Address

37 Jawaharlal Nehru Road, Virginia House, Kolkata, WB, IND, 700 071

Website

https://www.itcportal.com

ITC Ltd is an Indian conglomerate that primarily operates in the consumer goods space, particularly cigarettes. The company operates in four main business segments: Fast Moving Consumer Goods; Hotels; Paperboards, Paper, and Packaging; and Agri-Business. Roughly three-quarters of the company's total revenue comes from the Fast Moving Consumer Goods Business, which is dominated by cigarettes but also includes branded packaged foods, personal care products, and other categories. The company generates the vast majority of its revenue in India.