(redirected from Roces)
Also found in: Dictionary, Thesaurus, Medical, Encyclopedia, Wikipedia.


Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson
References in periodicals archive ?
For the rest of the year, Roces said the country will continue to encounter blips of inflation below the 2-percent territory as base effects come into play.
Case records showed that Roces got 2,500 shares from Forever Flawless in exchange for her promoting, endorsing, marketing, and advertising services.
According to Alvarez-Buylla Roces, the imported corn should never be used for human consumption, "much less if it is contaminated with glyphosate."
Mina Roces's book is significant in many respects, offering the first comprehensive account of women's movements in the Philippines during the last two decades.
Panfilo Lacson, who also lost to Arroyo, said Thursday he will support Roces if she were to run in an election for president.
Those in the biz see a glimmer of hope in Roces' stance, while church groups are wary of the betrayal of their moral values.
According to Roces, the downtrend in inflation to a 22-month low of 2.7 percent in June from 3.
Roces also noted that electricity prices have gone down, as Meralco slashed rates by around P0.107 per kilowatt-hour (kWh) in July, or a downward adjustment of P0.57 per kWh from May on the back of lower transmission charges for residential consumers.
If Poe were alive today, "he would thank President Aquino for confirming him as a National Artist," said Roces.
The 24-year-old, streetsmart Roces, who never knew her Filipino mother or German father, had barely finished high school when she drew the attention of prominent producers and directors with her wit, frankness and unassuming manner.
Roces recalled, 'I was invited to Australia to supervise its publication.
'We still expect the peso to be weaker from current levels by the finish line, with reasons mainly from: our twin deficits with a growing Current Account negative balance, US Fed pausing and higher probability of one rate cut this second half of the year, BSP looking to aggressively cut policy rates as well to support investments, BPOs, [business-pricess outsourcing] and remittances,' Roces said.