Cholamandalam Financial Holdings (BOM:504973) ROCE % : 3.77% (As of Mar. 2024)

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What is Cholamandalam Financial Holdings 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. Cholamandalam Financial Holdings's annualized ROCE % for the quarter that ended in Mar. 2024 was 3.77%.

Cholamandalam Financial Holdings ROCE % Historical Data

The historical data trend for Cholamandalam Financial Holdings'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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Cholamandalam Financial Holdings ROCE % Chart

Cholamandalam Financial Holdings Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROCE %

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6.37

6.26

6.65

4.44

3.94

Cholamandalam Financial Holdings 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															4.98	4.22	2.97	3.42	3.77

Cholamandalam Financial Holdings ROCE % Calculation

Cholamandalam Financial Holdings'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 )
	=	49165.9	/	( ( (1310329.6 - 385730.8)	+	(1769176.7 - 195602.1) )	/ 2 )
	=	49165.9	/	( (924598.8	+	1573574.6)	/ 2 )
	=	49165.9	/	1249086.7
	=	3.94 %

Cholamandalam Financial Holdings'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 )
	=	59256.8	/	( ( (0 - 0)	+	(1769176.7 - 195602.1) )	/ 1 )
	=	59256.8	/	( ( 0	+	1573574.6 )	/ 1 )
	=	59256.8	/	1573574.6
	=	3.77 %

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

Cholamandalam Financial Holdings (BOM:504973) 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.

Cholamandalam Financial Holdings ROCE % Related Terms

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Cholamandalam Financial Holdings (BOM:504973) Business Description

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CHOLAHLDNG:India

Address

No. 234, NSC Bose Road, Dare House, Chennai, TN, IND, 600 001

Website

https://www.cholafhl.com

Cholamandalam Financial Holdings Ltd along with its subsidiaries is a diversified investment company under the Murugappa Group. It offers financial services that include general insurance, residential mortgages, auto loans, risk services, and non-banking financial services. The company's activities are located exclusively in India. It has two primary products/service segments which are Financial Services and Insurance and allied services.

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