Sharp Chucks and Machines (NSE:SCML) ROCE % : 17.12% (As of Mar. 2023)

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What is Sharp Chucks and Machines 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. Sharp Chucks and Machines's annualized ROCE % for the quarter that ended in Mar. 2023 was 17.12%.

Sharp Chucks and Machines ROCE % Historical Data

The historical data trend for Sharp Chucks and Machines'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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Sharp Chucks and Machines ROCE % Chart

Sharp Chucks and Machines Annual Data

Trend

Mar21

Mar22

Mar23

ROCE %

15.16

15.88

17.12

Sharp Chucks and Machines Semi-Annual Data
	Mar21	Mar22	Mar23
ROCE %	15.16	15.88	17.12

Sharp Chucks and Machines ROCE % Calculation

Sharp Chucks and Machines'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 )
	=	145.6	/	( ( (1839.209 - 1037.834)	+	(1800.358 - 900.677) )	/ 2 )
	=	145.6	/	( (801.375	+	899.681)	/ 2 )
	=	145.6	/	850.528
	=	17.12 %

Sharp Chucks and Machines's ROCE % of for the quarter that ended in Mar. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2023 )		(Q: Mar. 2022 )		(Q: Mar. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2023 )		(Q: Mar. 2022 )		(Q: Mar. 2023 )
	=	145.6	/	( ( (1839.209 - 1037.834)	+	(1800.358 - 900.677) )	/ 2 )
	=	145.6	/	( ( 801.375	+	899.681 )	/ 2 )
	=	145.6	/	850.528
	=	17.12 %

(1) Note: The EBIT data used here is one times the annual (Mar. 2023) EBIT data.

Sharp Chucks and Machines (NSE:SCML) 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.

Sharp Chucks and Machines ROCE % Related Terms

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Sharp Chucks and Machines (NSE:SCML) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Sharp Chucks and Machines Ltd (NSE:SCML) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

A-12, Industrial Development Colony, Jalandhar, PB, IND, 144012

Website

https://www.sharpchucks.com

Sharp Chucks and Machines Ltd is engaged in manufacturing forging products, casting products and machined components, that finds application in diverse industry, such as tractor, automobiles, material handling & earth moving equipment, railways, defense, machine tools, DIY industry, etc.

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