SRF (NSE:SRF) ROCE % : 14.22% (As of Mar. 2024)

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What is SRF 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. SRF's annualized ROCE % for the quarter that ended in Mar. 2024 was 14.22%.

SRF ROCE % Historical Data

The historical data trend for SRF'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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SRF ROCE % Chart

SRF Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROCE %

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15.28

20.45

25.80

24.06

13.83

SRF 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															23.10	15.94	13.66	11.50	14.22

SRF ROCE % Calculation

SRF'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 )
	=	19945.1	/	( ( (187545.2 - 49166)	+	(204819.4 - 54807.7) )	/ 2 )
	=	19945.1	/	( (138379.2	+	150011.7)	/ 2 )
	=	19945.1	/	144195.45
	=	13.83 %

SRF'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 )
	=	21332.8	/	( ( (0 - 0)	+	(204819.4 - 54807.7) )	/ 1 )
	=	21332.8	/	( ( 0	+	150011.7 )	/ 1 )
	=	21332.8	/	150011.7
	=	14.22 %

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

SRF (NSE:SRF) 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.

SRF ROCE % Related Terms

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SRF (NSE:SRF) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » SRF Ltd (NSE:SRF) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

503806:India

Address

Block - C, Sector - 45, Gurugram, HR, IND, 122 003

Website

https://www.srf.com

SRF Ltd operates in the textiles, chemical and packaging business based in India. The company generates around half of its revenue internationally and operates through four business segments. The technical textiles business offers products such as nylon tyre cords, belting fabric, coated fabrics, laminated fabric, polyester tyre cords, and industrial yarns. The chemicals business provides refrigerant gases, pharmaceuticals, and fluorochemicals. Finally, the packaging film business offers polyester films used to package food, cosmetics, healthcare, and personal products. The other segment includes coated fabric, laminated fabric, and engineering plastics. The Chemicals business segment act as a major revenue driver for the firm.