Tata Communications (BOM:500483) ROCE % : 21.63% (As of Jun. 2024)

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What is Tata Communications 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. Tata Communications's annualized ROCE % for the quarter that ended in Jun. 2024 was 21.63%.

Tata Communications ROCE % Historical Data

The historical data trend for Tata Communications'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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Tata Communications ROCE % Chart

Tata Communications Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROCE %

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8.92

16.97

19.03

22.69

16.69

Tata Communications Quarterly Data
	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24
ROCE %	Get a 7-Day Free Trial															23.59	14.48	11.34	14.52	21.63

Tata Communications ROCE % Calculation

Tata Communications'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 )
	=	18072.4	/	( ( (205526.2 - 97859.4)	+	(245613.4 - 136706.5) )	/ 2 )
	=	18072.4	/	( (107666.8	+	108906.9)	/ 2 )
	=	18072.4	/	108286.85
	=	16.69 %

Tata Communications's ROCE % of for the quarter that ended in Jun. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Jun. 2024 )		(Q: Mar. 2024 )		(Q: Jun. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jun. 2024 )		(Q: Mar. 2024 )		(Q: Jun. 2024 )
	=	23555.6	/	( ( (245613.4 - 136706.5)	+	(0 - 0) )	/ 1 )
	=	23555.6	/	( ( 108906.9	+	0 )	/ 1 )
	=	23555.6	/	108906.9
	=	21.63 %

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

Tata Communications (BOM:500483) 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.

Tata Communications ROCE % Related Terms

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Tata Communications Business Description

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GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Tata Communications Ltd (BOM:500483) » Definitions » ROCE %

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TATACOMM:India

Address

Plot No. C21 & C36, ‘G’ Block, Bandra Kurla Complex, Mumbai, MH, IND, 400 098

Website

https://www.tatacommunications.com

Tata Communications Ltd is the primary provider of international and national voice and data transmission long-distance services, internet dial-up and broadband services and other value-added services. The company's reportable segments are Voice Solutions (VS), Data and Managed Services (DMS) and Real Estate (RE). It generates maximum revenue from Data and Managed Services (DMS) segment.

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