This ratio is a measure of how effectively a company is using its capital (Pre-tax Profit divided by Total Asset minus Current Liabilities and times by 100).
ROCE is a measure of how productively a company manages its refining, marketing and transportation assets. ROCE is the ratio of operating profits generated to the amount of operating capital invested.
ROCE, or return on investment (ROI), is the profit before interest and tax divided by average capital employed. It indicates the profit-generating capacity of capital employed.
NOPAT (= EBIT minus taxes) in relation to Capital Employed (= shareholdersâ€(tm) equity plus interest-bearing debt minus cash-like items)
Return on capital employed measures the profit as a percentage of the capital employed (the total capital invested in the business). It is a measure of how well the money invested in the business is providing a return to the investors.
A financial indicator calculated by showing profit as a percentage of the capital employed.
A ratio of income from continuing operations, adjusted for after-tax interest expense and minority interest, to the yearly average of total debt, minority interest and stockholdersâ€™ equity.
An indicator of a company's profitability related to the total financing. It is calculated by dividing income before taxes, minority interests and the financial and extraordinary results by capital employed (defined as the average of shareholders' equity plus minority interests plus net total borrowings for the year).
Operating result (EBIT) relative to average capital employed.
A key financial ratio that measures profit before interest and tax as a return on capital employed (i.e. debt and equity). ROCE can be decomposed into two constituent ratios - asset turnover (measuring the marketing efficiency with which sales revenue is generated from the asset base) and the net profit margin (measuring the operating cost efficiency with which profits are earned from sales revenue).
Calculated by dividing EBIT by Capital Employed. It is an indicator of the rate of return achieved by the company's businesses based on the business assets employed by the company, excluding the impact of cash and borrowings. It is also known as Return on Funds Employed.
(ROCE) A calculation to asses profitability, usually expressed as a percentage. (Profit divided by Capital times by 100.)
Operating income plus financial revenues expressed as a percentage of average capital employed.
the ratio of accounting profit to capital employed. The measure of capital employed can be either Historic Cost Accounting (HCA) or Current Cost Accounting (CCA).
Annual trading profit expressed as a percentage of average capital employed over the year.
A company's profits before tax and interest divided by its capital employed. A measure of how efficiently the company is using its resources.
The percentage of operating income to capital employed.
Profit after net financial items plus financial expenses divided by average shareholders' equity.
Return on capital employed (â€œROCEâ€) is an accounting ratio designed to assess the profit-generating capacity of capital employed . It is defined as profits before interest and tax divided by capital employed, expressed as a percentage. Broadly speaking, the higher the return on capital employed, the more successful the business.
Percentage earnings on capital invested in the business by the shareholders. This measure is used to estimate the return the company has achieved on the assets it uses. The calculation uses average capital employed over a period (usually the financial year), attributable to funds provided by the shareholders. Average capital employed excludes interest bearing borrowings and cash deposits. ROCE = Profit before interest and taxes Average capital employed
Return on capital employed. EBIT ÷(shareholders funds + debt).... more on Return on capital employed
A measure of the returns that a company is realizing from its capital. ROCE = (IBT + fi nancial result + extraordinary income)/(average of shareholders' equity + minority interests + total net borrowings).
An accounting ratio designed to assess the underlying profitability of a company. It is defined as profits before interest and tax divided by capital employed, expressed as a percentage. Broadly speaking, the higher the return on capital employed, the more successful the company.
Return on capital employed is calculated for the Group as operating profit as a percentage of average capital employed. Goodwill is excluded for the business areas.
Return on Capital Employed (ROCE) determines the return on the capital utilised within a company. For the calculation of this parameter, the result after tax and the interest expenses less tax effects are compared with the average booked capital employed.
This describes the returns we make on the average assets employed during the year: Income from ordinary activities + Interest expenses x 100 Average assets** (Balance sheet total start of year + Year-end total)
Measures the profit as a percentage of the capital employed to produce that profit (the total capital invested in the business). It is a measure of how well the money invested in a business is doing in providing a return to the providers of that capital.
Often shortened to ROCE. This ratio is a measure of how effectively the company is using its capital. The formula looks like this: Profit before interest and tax ( PBIT) / (total assets - current liabilities) This measures the return on all the assets the company is using.
Also known as return on total assets, it is the profit before interest and tax divided by average total capital employed (total borrowings plus net worth or total assets). Average capital employed is the sum of capital employed at the beginning of the year and at the end of the year divided by two. The ratio indicates how efficiently the funds are utilised irrespective of the mode of financing. Also known as return on total assets.
Return on Capital Employed (ROCE) is used in finance as a measure of the returns that a company is realizing from its capital employed. The ratio can also be seen as representing the efficiency with which capital is being utilized to generate revenue. It is commonly used as a measure for comparing the performance between businesses and for assessing whether a business generates enough returns to pay for its cost of capital.