您现在的位置是:Leisure >>正文
【when was last year of imsa camel gt】Is Rallis India Limited (NSE:RALLIS) Better Than Average At Deploying Capital?
Leisure5人已围观
简介Today we’ll look at Rallis India Limited (NSE:RALLIS) and reflect on its potential as an investment. ...
Today we’ll look at Rallis when was last year of imsa camel gtIndia Limited (
NSE:RALLIS
) and reflect on its potential as an investment. In particular, we’ll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business.
Firstly, we’ll go over how we calculate ROCE. Then we’ll compare its ROCE to similar companies. And finally, we’ll look at how its current liabilities are impacting its ROCE.
What is Return On Capital Employed (ROCE)?
ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business. In general, businesses with a higher ROCE are usually better quality. Overall, it is a valuable metric that has its flaws. Author Edwin Whiting
says
to be careful when comparing the ROCE of different businesses, since ‘No two businesses are exactly alike.’
So, How Do We Calculate ROCE?
The formula for calculating the return on capital employed is:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets – Current Liabilities)
Or for Rallis India:
0.17 = ₹2.2b ÷ (₹22b – ₹8.7b) (Based on the trailing twelve months to December 2018.)
Therefore,
Rallis India has an ROCE of 17%.
Check out our latest analysis for Rallis India
Is Rallis India’s ROCE Good?
When making comparisons between similar businesses, investors may find ROCE useful. Using our data, Rallis India’s ROCE appears to be around the 16% average of the Chemicals industry. Regardless of where Rallis India sits next to its industry, its ROCE in absolute terms appears satisfactory, and this company could be worth a closer look.
NSEI:RALLIS Past Revenue and Net Income, March 1st 2019
When considering ROCE, bear in mind that it reflects the past and does not necessarily predict the future. Companies in cyclical industries can be difficult to understand using ROCE, as returns typically look high during boom times, and low during busts. This is because ROCE only looks at one year, instead of considering returns across a whole cycle. Since the future is so important for investors, you should check out our
free
report on analyst forecasts for Rallis India
.
Rallis India’s Current Liabilities And Their Impact On Its ROCE
Current liabilities include invoices, such as supplier payments, short-term debt, or a tax bill, that need to be paid within 12 months. The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise. To counter this, investors can check if a company has high current liabilities relative to total assets.
Rallis India has total assets of ₹22b and current liabilities of ₹8.7b. As a result, its current liabilities are equal to approximately 39% of its total assets. Rallis India has a middling amount of current liabilities, increasing its ROCE somewhat.
What We Can Learn From Rallis India’s ROCE
Rallis India’s ROCE does look good, but the level of current liabilities also contribute to that. You might be able to find a better buy than Rallis India. If you want a selection of possible winners, check out this
free
list of interesting companies that trade on a P/E below 20 (but have proven they can grow earnings).
If you are like me, then you will
not
want to miss this
free
list of growing companies that insiders are buying.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at
. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
View comments
Tags:
相关文章
Margaux Resources Announces Collaboration with GoldSpot Discoveries and Spring Work Program on Cassiar Gold Project
LeisureCalgary, Alberta--(Newsfile Corp. - May 4, 2020) - Margaux Resources Ltd. (TSXV: MRL) (OTCQB: MARFF ...
【Leisure】
阅读更多BRIEF-Nanjing Red Sun Signs Framework Agreement For Industry Park Project
LeisureJan 1 (Reuters) - Nanjing Red Sun Co Ltd:* SAYS IT SIGNS FRAMEWORK AGREEMENT FOR INDUSTRY PARK PROJE ...
【Leisure】
阅读更多BRIEF-Jiangsu Etern's Controlling Shareholder To Unload Up To 3 Pct Stake Between March 4 And Aug 30
LeisureFeb 1 (Reuters) - Jiangsu Etern Co Ltd:* SAYS CONTROLLING SHAREHOLDER PLANS TO UNLOAD UP TO 3 PERCEN ...
【Leisure】
阅读更多
热门文章
- Toll Brothers Makes Wedbush's Best Ideas List: Here's Why
- BP to expand emissions disclosure on oil investments
- U.S. office vacancy rate inches higher in fourth quarter - Reis
- Becerra and Other Democratic State AGs Appeal Ruling Killing ACA
- EU open to compensating firms hit by coronavirus, more help for Italy
- AWR or SJW: Which Utility Stock is a Better Buy for 2019?
最新文章
-
Great Ajax Corp. to Host Earnings Call
-
BRIEF-K W Nelson Interior Design And Contracting Acquires 7 Mln Affluent Partners Shares
-
Erik Prince had 'no knowledge' of training agreement in China's Xinjiang - spokesman
-
A Spotlight On Jet Freight Logistics Limited's (NSE:JETFREIGHT) Fundamentals
-
CMA CGM Donates 200,000 Face Masks
-
Dirty money risks encroach on Estonia's digital utopia
友情链接
- Japan's January factory activity weakens to 29-month low as export orders tumble - PMI
- Deepwater Activity Remains Strong in International Oil Markets: Trey Stolz, Managing Director of Oilfield Services Research at IBERIA Capital Partners, Interviews with The Wall Street Transcript
- What Should We Expect From Renishaw plc’s (LON:RSW) Earnings Over The Next Year?
- Mark Goldfinger Examines the Benefits of a Hybrid Investment Strategy
- Our Take On XPD Soccer Gear Group Limited’s (ASX:XPD) CEO Salary
- BRIEF-Wisdom Sports Group Appoints Sheng Jie As Vice Chairman
- SE Asia Stocks-Most end lower; weak economic data stokes slowdown fears
- What To Know Before Buying Canadian Tire Corporation, Limited (TSE:CTC.A) For Its Dividend
- US STOCKS-Futures edge lower ahead of U.S. jobs data
- Who Has Been Buying Pulmonx Corporation (NASDAQ:LUNG) Shares?