Return on average capital employed (ROACE) is a financial ratio that shows profitability versus the investments a company has made in itself.
Formula used for computing return on average capital employed The ROACE is calculated as: ROACE = EBIT / (Average Total Assets - Average Current Liabilities) i.e. Capital Employed = Total Assets – Current Liabilities = Equity + Non-current Liabilities Calculating Return on Average Capital ...
Formula for Calculating Return on Average Equity Where: Net Income = the company's net income for a given period of time Average Equity = the average of the company's equity at the beginning and end of the period being considered It is important to use average equity in the calculation...
The WACC is the minimum acceptable return that a company must earn on an existing asset base to satisfy its creditors, owners, and other providers of capital, or they will invest elsewhere. Formula The following is the WACC calculation formula: WACC = E/V × Re + D/V × Rd × (1...
ARPU Formula What is a Good ARPU? ARPU Calculator 1. Customer and Subscription Price Assumptions 2. ARPU Calculation Example What is ARPU? The Average Revenue Per User (ARPU) quantifies the amount of revenue generated on average from each customer. The implied ARPU can be calculated by divid...
Col K formula returns the number of days between the invoice date (Col B and payment date Col J), but only for invoices -- payments always return -1. Finally (almost), Col L take the average of all payments with the same number (Col I), but does...
We present here specific definitions for each of the combinations of one of the three measures applied to each of the three types of items. The nine are presented in Table 1. For each cell, the formula for a definition of a measure of worth is the ratio of the type of item to one ...
is a financial ratio that calculates the rate of return a company generates on the average amount of equity invested by its shareholders. Equity represents the ownership stake that shareholders hold in a company. ROAE is a key indicator of how efficiently a company is utilizing the capital invest...
Learn more about this topic: Average Variable Cost | Definition, Formula & Equation from Chapter 13 / Lesson 8 456K Learn the definition and applications of average variable cost, the average variable cost formula, and how to calculate the average variable cost using its formula. ...
Labor Productivity | Definition, Formula & Calculation from Chapter 17 / Lesson 16 91K Learn about labor productivity. Understand how to calculate labor productivity, examine the labor productivity formulas, and see how to improve labor productivity. Related...