c16.cc|官网下载

                        Businessmate Site Logo

                        Home - About - Advertise

                        Date: 2020-06-08
                        Search Articles by topic

                        Mangement and Leadership

                        Production Management


                        Business Strategy

                        Accounting

                        Marketing

                        Human Resource Management


                        Organizational Theory & Design


                        National and Organizational Culture

                        Important Business Terms

                         

                        Article Search
                        Search Title & Content:
                        Search Author:

                        Custom Search

                         

                         

                         

                         

                         

                        Return on Capital Employed (ROCE)

                         
                        Recommend this article to your friends!
                         

                        Return on capital employed (ROCE) tries to measure the profitability and efficiency of investments.

                         

                        The formula:

                         

                        ROCE = EBIT / (Total Assets - Current Liabilities)

                         

                        This measure thus tries to reveal the profitability of assets currently at hand. It says something about how effectively and efficiently a company uses its assets to generate revenue and income.

                        ROCE should always be higher than the rate of borrowing in e.g. banks. Otherwise, any new borrowing of the company would reduce shareholders' profit.

                         

                        Investors might be compelled to invest in companies that show a high ROCE, because this might signal that the company is able to generate great profits from the assets currently at the disposal of the company.

                         
                        ?
                         
                         
                         
                        Date Created: 2009-11-12
                        Posted by: Admin
                         
                         
                        Return on Capital Employed (ROCE)
                         

                        Related resources:

                        Return on Investment (ROI)
                        Return on Assets (ROA)
                        Return on Equity (ROE)
                        Return on Sales (ROS)
                        Contribution Margin and Contribution Margin Ratio
                        Reference(s)
                         
                        Keywords:

                        Online MBA, Online MBA Courses, Return on Capital Employed, ROCE, example, formula, calculation

                         






                        Advertise on Businessmate.org


                         
                         

                        Copyright © BusinessMate 2009-2019

                         
                        Home - About - Terms of Use - Contact - Sitemap - Privacy Policy

                                              Technology

                                              news

                                              explore

                                              Premier League

                                              education

                                              Celebrity

                                              Celebrity

                                              Real estate

                                              the weather