Return on capital employed (ROCE) is the ratio of net operating profit of a company to its capital employed. It measures the profitability of a company by expressing its operating profit as a percentage of its capital employed. Capital employed is the sum of stockholders' equity and long-term...
Return on average capital employed (ROACE) is a financial ratio that shows profitability versus the investments a company has made in itself.
The return on capital employed ratio shows how much profit each dollar of employed capital generates. Obviously, a higher ratio would be more favorable because it means that more dollars of profits are generated by each dollar of capital employed. For instance, a return of .2 indicates that f...
Return on Investment (ROI): ROI is a ratio that measures the profitability of an investment, typically expressed as a percentage of the initial investment. Like ROCE, ROI measures the returns generated by the capital employed in the business, but it is often used to evaluate the returns of ...
Disclaimer:The contents of this article are for informational and entertainment purposes only and should not be construed as financial advice or recommendations to buy or sell any securities. What's More? Inventory to Sales Ratio Return on Capital Employed Ratio ...
Analysts, investors and stakeholders use the return on capital employed ratio when analysing a company as it can be a better gauge for the performance or profitability of a company over a longer period of time. Investors use it to help work out what their return might be in the future. ...
Return on capital employed (ROCE) is a profitability ratio that measures the profitability of a company and the efficiency with which a company is using its capital. The ROCE is considered one of the bestprofitability ratios,as it shows the operating income generated per dollar of invested capita...
The return on assets ratio, often called the return on total assets, is a profitability ratio that measures the net income produced by total assets during a period by comparing net income to the average total assets.
What is a good return on equity? ROE Formula The formula for ROE used in our return on equity calculator is simple: ROE = Net Income / Total Equity Net income is also called "profit". Both input values are in the relevant currency while the result is a ratio. To get a percentage res...
Price to Cash Flow Ratio Price-Earnings (P/E) Ratio Receivables Turnover Retention Ratio Return on Assets Return on Capital Employed Return on Equity (ROE) Ratio Times Interest Earned Ratio Specialized/Industry-Specific Ratios Capital Adequacy Ratio EBITDA Coverage Ratio Debt Service Coverage Ratio Pr...