Return on Capital Employed, usually the abbreviation ROCE is used. It is a term that refers to the return on long-term invested capital. It measures how much of operating economic result before taxes the enterprise reached from one dollar invested by shareholders and creditors.
Calculation:
ROCE = EBIT / (Equity + Reserves + Long-term liabilities + Long-term bank loans)
Use of the ROCE in practice: In the enterprise it used by CFO in financial analysis to analyze ratios.
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