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...
Definition Return on capital employed (ROCE) is a measure of the returns that a business is achieving from the capital employed, usually expressed in percentage terms. Capital employed equals a company's Equity plus...
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 fo...
Return on average capital employed (ROACE) is a useful ratiowhen analyzing businessesin capital-intensive industries, such as oil. Businesses that can squeeze higher profits from a smaller amount of capital assets will have a higher ROACE than businesses that are not as efficient in converting ca...
Return on capital employedProfit before interestx 100% Assets employed Return on equityEarningsx 100% Ordinary share capital and reserves > Earnings per shareEarnings Number of ordinary shares Price earnings ratioMarket price Earnings per share Dividend coverEarnings Dividend Dividend yieldDividendx 100%...
Part of the Guide On... Capital Efficiency Capital Efficiency Core Concepts Return on Invested Capital (ROIC)Return on Equity (ROE)Return on Assets (ROA)Return on Investment (ROI)Return on Capital Employed (ROCE)Invested Capital (IC)DuPont AnalysisReturn on Sales (ROS)Equity Multiplier...
Return on Capital Employed 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 pe...
Return on capital employed Return on equity Earnings per share Price earnings ratio Dividend cover Dividend yield Gross profit margin Net profit margin Asset turnover Stock holding period Debtors collection period Creditors payment period LIQUIDITY RATIOS Current ratio Quick asset ratio Gearing ratio Intere...
Part of the Guide On... Capital Efficiency Capital Efficiency Core Concepts Return on Invested Capital (ROIC)Return on Equity (ROE)Return on Assets (ROA)Return on Investment (ROI)Return on Capital Employed (ROCE)Invested Capital (IC)DuPont AnalysisReturn on Sales (ROS)Equity Multiplier...
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 ...