R M Drip & Sprinklers Systems (NSE:RMDRIP) ROCE % : 6.40% (As of Sep. 2023)

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What is R M Drip & Sprinklers Systems 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. R M Drip & Sprinklers Systems's annualized ROCE % for the quarter that ended in Sep. 2023 was 6.40%.

R M Drip & Sprinklers Systems ROCE % Historical Data

The historical data trend for R M Drip & Sprinklers Systems'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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R M Drip & Sprinklers Systems ROCE % Chart

R M Drip & Sprinklers Systems Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROCE %

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-22.26

17.40

6.51

2.31

5.50

R M Drip & Sprinklers Systems Semi-Annual Data
	Mar13	Mar14	Mar15	Mar16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
ROCE %	Get a 7-Day Free Trial													-13.90	20.80	-47.83	57.13	6.40

R M Drip & Sprinklers Systems ROCE % Calculation

R M Drip & Sprinklers Systems'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 )
	=	8.982	/	( ( (306.509 - 152.729)	+	(288.376 - 115.759) )	/ 2 )
	=	8.982	/	( (153.78	+	172.617)	/ 2 )
	=	8.982	/	163.1985
	=	5.50 %

R M Drip & Sprinklers Systems'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 )
	=	14.468	/	( ( (288.376 - 115.759)	+	(375.815 - 96.066) )	/ 2 )
	=	14.468	/	( ( 172.617	+	279.749 )	/ 2 )
	=	14.468	/	226.183
	=	6.40 %

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

R M Drip & Sprinklers Systems (NSE:RMDRIP) 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.

R M Drip & Sprinklers Systems ROCE % Related Terms

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R M Drip & Sprinklers Systems (NSE:RMDRIP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Farm & Heavy Construction Machinery » R M Drip & Sprinklers Systems Ltd (NSE:RMDRIP) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Gat No. 475, Village Gonde, Taluka Sinnar, Nashik, MH, IND, 422113

Website

http://www.rmdrip.com

R M Drip & Sprinklers Systems Ltd designs manufacture and sell micro-irrigation equipment. The company's products are Drip Irrigation, Sprinkler Irrigation, Filters, among others. The Company also assists the farmers in designing and installation of its Sprinkler and Drip Irrigations systems according to their needs. The dealer network expands from Maharashtra, Madhya Pradesh, Gujarat, Karnataka and extended its market to Uttar Pradesh, Bihar and Jharkhand.

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