Godrej Industries (BOM:500164) ROCE % : 7.24% (As of Mar. 2024)

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What is Godrej Industries 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. Godrej Industries's annualized ROCE % for the quarter that ended in Mar. 2024 was 7.24%.

Godrej Industries ROCE % Historical Data

The historical data trend for Godrej Industries'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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Godrej Industries ROCE % Chart

Godrej Industries Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROCE %

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14.07

7.19

10.05

12.86

9.46

Godrej Industries 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															17.62	12.61	9.29	9.13	7.24

Godrej Industries ROCE % Calculation

Godrej Industries'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 )
	=	23168.6	/	( ( (439750.5 - 221349.8)	+	(615477 - 343856.6) )	/ 2 )
	=	23168.6	/	( (218400.7	+	271620.4)	/ 2 )
	=	23168.6	/	245010.55
	=	9.46 %

Godrej Industries'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 )
	=	19654.8	/	( ( (0 - 0)	+	(615477 - 343856.6) )	/ 1 )
	=	19654.8	/	( ( 0	+	271620.4 )	/ 1 )
	=	19654.8	/	271620.4
	=	7.24 %

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

Godrej Industries (BOM:500164) 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.

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Godrej Industries (BOM:500164) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » Godrej Industries Ltd (BOM:500164) » Definitions » ROCE %

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GODREJIND:India

Address

Godrej One, Pirojshanagar, Eastern Express Highway, Vikhroli (East), Mumbai, MH, IND, 400 079

Website

https://www.godrejindustries.com

Godrej Industries Ltd is an India-based conglomerate with activities in agriculture, chemicals, real estate, and consumer goods. The firm has eight segments. The estate and property development segment develops, leases, and sells residential and commercial properties. The animal feed segment sells animal feed compounds for cattle, poultry, shrimp, and fish. The vegetable oils segment produces refined vegetable oils. The chemicals segment sells compounds used to make soaps, detergents, and other consumer products. The dairy segment sells milk and milk-based products. The crop protection segment provides pesticides and growth compounds. The two smallest segments account for finance and investments as well as uncategorized revenue. Most of the company's revenue comes from India.

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