Fusion Micro Finance (NSE:FUSION) ROCE % : 6.87% (As of Mar. 2024)

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What is Fusion Micro Finance 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. Fusion Micro Finance's annualized ROCE % for the quarter that ended in Mar. 2024 was 6.87%.

Fusion Micro Finance ROCE % Historical Data

The historical data trend for Fusion Micro Finance'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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Fusion Micro Finance ROCE % Chart

Fusion Micro Finance Annual Data

Trend

Mar20

Mar21

Mar22

Mar23

Mar24

ROCE %

3.27

1.58

0.56

9.33

8.21

Fusion Micro Finance Quarterly Data
	Mar20	Mar21	Jun21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROCE %	Get a 7-Day Free Trial								9.70	10.85	6.81	7.54	6.87

Fusion Micro Finance ROCE % Calculation

Fusion Micro Finance'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 )
	=	7492.7	/	( ( (93635.37 - 28096.26)	+	(117743.2 - 677.3) )	/ 2 )
	=	7492.7	/	( (65539.11	+	117065.9)	/ 2 )
	=	7492.7	/	91302.505
	=	8.21 %

Fusion Micro Finance'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 )
	=	8043.6	/	( ( (0 - 0)	+	(117743.2 - 677.3) )	/ 1 )
	=	8043.6	/	( ( 0	+	117065.9 )	/ 1 )
	=	8043.6	/	117065.9
	=	6.87 %

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

Fusion Micro Finance (NSE:FUSION) 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.

Fusion Micro Finance ROCE % Related Terms

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Fusion Micro Finance (NSE:FUSION) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » Fusion Micro Finance Ltd (NSE:FUSION) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

543652:India

Address

Plot No. 86, Institutional Sector - 32, Gurugram, HR, IND, 122001

Website

https://www.fusionmicrofinance.com

Fusion Micro Finance Ltd is engaged in micro finance lending activities, providing financial services to poor women in India who are organized as Joint Liability Group (JLGs). The company provides small value collateral free loans. Apart from micro finance lending, the company also has lending to MSME enterprises. It uses its distribution channel to provide other financial products and services to the members relate to providing of loans to the members for the purchase of certain productivity enhancing products such as mobile handsets, bicycle.

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