Return on Capital Employed financial definition of Return on Capital Employed. Return on Capital Employed finance term by the Free Online Dictionary.

Return on capital employed (ROCE)

Indicator of profitability of the firm's capital investments. Determined by dividing Earnings Before Interest and Taxes by (capital employed plus short-term loans minus intangible assets). The idea is that this ratio should at least be greater than the cost of borrowing.

Return on Capital Employed

A measurement of return on the investment needed for a business to function, otherwise known as capital employed, expressed as a dollar amount or a percentage. It is used to show a business' health, specifically by showing how efficiently its investments are used to create a profit. A good ROCE is one that is greater than the rate at which the company borrows.

Because capital employed has no set definition, there are different ways to calculate ROCE. Two common ways are:

ROCE = (Operating Profit Before Tax) / (Total Assets - Current Liabilities) and ROCE = ((Profit before Tax) / (Capital Employed)) * 100.

One limitation to ROCE is the fact that it does not account for depreciation of the capital employed. Because capital employed is in the denominator, a company with depreciated assets may find its ROCE increases without an actual increase in profit. It also neglects inflation, which might depress ROCE unnecessarily. See also: Return on Average Capital Employed (ROACE), Required return.

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ROCE	This is all part of our strategy to steer the business back to delivering a much improved return on capital employed as possible. Mersey briefs advise on Morgan's Redrow deal by Daily Post (Liverpool, England) The GSM Association - the global trade body representing more than 750 GSM mobile phone operators - citing data from a study by management consultants, says the industry's return on capital employed was as low as 7% in 2007 or less than half that of other significant sectors such as steel and software. Roaming charges: Mobile phone operators warn that price caps hinder ... by guardian.co.uk / guardian.co.uk During a year when ABF operated through a challenging freight environment, Arkansas Best maintained its strong financial position and generated a full year 2007 After-Tax Return on Capital Employed of 9. Arkansas best 4q profit falls by Arkansas Business	Retirement Relief Retiring a Bill Retiro Retiro automatico Retorno actual Retorno ajustado por exposicion a un riesgo Retorno esperado Retorno libre de riesgo Retorno nominal Retorno sobre la inversion Retorno sobre las ventas Retorno sobre o investimento Retorno superior al mercado Retorno total Retracao do credito Retracement Retractable Bond retreatment bond Retribuzione annua garantita retrospective appraisal Return Return If Exercised Return of Capital Return of Capital Distribution Return on Assets Return on Capital Employed Return on Capital Gains Return on Common Equity Return on Common Stock Equity return on equity Return on Gross Invested Capital return on investment Return on Investment Capital Return on Net Assets Return On Revenue Return on Sales Return on Total Assets Return-to-maturity expectations Returned Without Action Reu Reuters Revaluation revaluation clause revaluation lease revaluation or reevaluation Revaluo Revenu des investissements Revenu disponible Revenu du capital dividends Revenu gagne Revenu national brut	Return of the Joker Return of the King Return Of The Living Acid Return of the living dead Return of the Mack Return of the Member Return of the Rentals Return of the Robin Return of the Warlord Return of Withdrawn Blood Return of writs return offset Return on Advertising Spending Return On Allocated Capital Return on assets Return on assets Return on assets Return on assets Return on assets Return On Assets Managed Return on Average Assets Return on Average Common Equity Return on Average Equity Return on Average Invested Capital Return on Average Net Worth Return on Brand Investment Return on capital Return on capital Return on capital Return on capital Return on Capital Employed Return on Capital Equity Return on Capital Gains Return on Capital Invested Return on Capital, Risk Adjusted Return on Capital, Risk-Adjusted Return on Common Equity Return on Common Shareholders Equity return on common stock equity Return on Customer Relationship Return On Debt Return on Economic Capital Return On Economic Equity Return on Education Investment Return on Energy Investment Return on equity Return on equity Return on equity Return on equity Return on equity Return on equity Return on Existing Investment Return on Expectation Return on Experience Return on Floorspace Return on Funds Employed Return on Gross Fixed Assets Return on Gross Invested Capital Return on Gross Invested Capital Return on Gross Investment Return on Incremental Invested Capital

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ROCE

This is all part of our strategy to steer the business back to delivering a much improved return on capital employed as possible.

Mersey briefs advise on Morgan's Redrow deal by Daily Post (Liverpool, England)

The GSM Association - the global trade body representing more than 750 GSM mobile phone operators - citing data from a study by management consultants, says the industry's return on capital employed was as low as 7% in 2007 or less than half that of other significant sectors such as steel and software.

Roaming charges: Mobile phone operators warn that price caps hinder ... by guardian.co.uk / guardian.co.uk

During a year when ABF operated through a challenging freight environment, Arkansas Best maintained its strong financial position and generated a full year 2007 After-Tax Return on Capital Employed of 9.

Arkansas best 4q profit falls by Arkansas Business

Retorno ajustado por exposicion a un riesgo

Retorno esperado

Retorno libre de riesgo

Retorno nominal

Retorno sobre la inversion

Retorno sobre las ventas