Nestle India (NSE:NESTLEIND) ROCE % : 78.30% (As of Sep. 2023)

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What is Nestle India 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. Nestle India's annualized ROCE % for the quarter that ended in Sep. 2023 was 78.30%.

Nestle India ROCE % Historical Data

The historical data trend for Nestle India'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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Nestle India ROCE % Chart

Nestle India Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

ROCE %

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41.71

49.62

57.31

56.25

60.00

Nestle India Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
ROCE %	Get a 7-Day Free Trial															63.90	61.29	69.67	60.72	78.30

Nestle India ROCE % Calculation

Nestle India's annualized ROCE % for the fiscal year that ended in Dec. 2022 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2022 )		(A: Dec. 2021 )		(A: Dec. 2022 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2022 )		(A: Dec. 2021 )		(A: Dec. 2022 )
	=	34105.4	/	( ( (82341.3 - 27647.4)	+	(89787.4 - 30797.5) )	/ 2 )
	=	34105.4	/	( (54693.9	+	58989.9)	/ 2 )
	=	34105.4	/	56841.9
	=	60.00 %

Nestle India'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: Jun. 2023 )		(Q: Sep. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2023 )		(Q: Jun. 2023 )		(Q: Sep. 2023 )
	=	50136	/	( ( (94524.5 - 30490.5)	+	(0 - 0) )	/ 1 )
	=	50136	/	( ( 64034	+	0 )	/ 1 )
	=	50136	/	64034
	=	78.30 %

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

Nestle India (NSE:NESTLEIND) 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.

Nestle India ROCE % Related Terms

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Nestle India (NSE:NESTLEIND) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Nestle India Ltd (NSE:NESTLEIND) » Definitions » ROCE %

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500790:India

Address

Nestle House, Jacaranda Marg, M Block, DLF City, Phase II, Gurugram, HR, IND, 122 002

Website

https://www.nestle.in

Nestle India Ltd is a subsidiary of Nestle of Switzerland with business divided into milk products and nutrition, beverages, prepared dishes and cooking aids, chocolate and confectionery, and vending food services. Milk products and nutrition consist of nutritional products for infants and pregnant and breastfeeding mothers. The Powdered and Liquid Beverages product division sells tea and instant coffee under the Nestea, Nescafe Classic, and Nescafe Gold brands. Prepared dishes and cooking aids comprise food-enriching flavors under the Maggi brand. The Confectionery products in chocolate and confectionery are KitKat, Munch Nuts, and Nestle Alpino. The company's business activity falls within a single operating segment, namely Food.

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