AB Cotspin India (NSE:ABCOTS) ROCE % : 13.61% (As of Sep. 2023)

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What is AB Cotspin 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. AB Cotspin India's annualized ROCE % for the quarter that ended in Sep. 2023 was 13.61%.

AB Cotspin India ROCE % Historical Data

The historical data trend for AB Cotspin 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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AB Cotspin India ROCE % Chart

AB Cotspin India Annual Data

Trend

Mar19

Mar20

Mar21

Mar22

Mar23

ROCE %

15.51

10.72

23.81

21.83

7.47

AB Cotspin India Semi-Annual Data
	Mar19	Mar20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
ROCE %	Get a 7-Day Free Trial			41.27	10.43	4.82	8.79	13.61

AB Cotspin India ROCE % Calculation

AB Cotspin India'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 )
	=	60.086	/	( ( (828.033 - 199.365)	+	(1494.369 - 513.785) )	/ 2 )
	=	60.086	/	( (628.668	+	980.584)	/ 2 )
	=	60.086	/	804.626
	=	7.47 %

AB Cotspin 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: Mar. 2023 )		(Q: Sep. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2023 )		(Q: Mar. 2023 )		(Q: Sep. 2023 )
	=	134.864	/	( ( (1494.369 - 513.785)	+	(1487.416 - 486.103) )	/ 2 )
	=	134.864	/	( ( 980.584	+	1001.313 )	/ 2 )
	=	134.864	/	990.9485
	=	13.61 %

(1) Note: The EBIT data used here is two times the semi-annual (Sep. 2023) EBIT data.

AB Cotspin India (NSE:ABCOTS) 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.

AB Cotspin India ROCE % Related Terms

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AB Cotspin India (NSE:ABCOTS) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » AB Cotspin India Ltd (NSE:ABCOTS) » Definitions » ROCE %

Traded in Other Exchanges

N/A

Address

Goniana Road, NH-54, Near lake-3, Bathinda, PB, IND, 151001

Website

https://www.abcotspin.com

AB Cotspin India Ltd has one segment of activity namely Cotton Ginning. Revenue is generated from the sale of products. The company is engaged in manufacturing cotton yarns & fabrics both combed and karded, knitted fabric, cottonseed oil and oilcake catering to the requirements of niche customers who in turn are engaged in making garments for their international buyers.

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