ranking is difficult as this method gives a relative measure rather than an absolute measure.
Advantages of Return on Capital Employed is that all management teams are familiar with it and ROCE is profitable. A disadvantage of ROCE is that there are many variables with it.
It is measured against the NBV of the assets of the business. These assets are depreciated, ROCE will increase despite of the face that the cash flow has remained the same
This is used to measure the amounts of returns they get from their employees. It can sometimes show an inaccurate number.
Normally expressed in percentages, Return on Capital Employed measures the returns particular business gets from capital employed which is calculated based on the company's equity.
It is similar to Return on capital employed (ROCE).
return on capital = earnings before interest and tax / capital employed * 100
it stands for return on capital employed...
return on capital employed
Return on capital employed means an accounting ratio used in finance, valuation, and accounting. Not to be confused with return on equity, it is similar to return on assets yet takes into account sources of financing.
return on capital employed (ROCE) is net income/(debt&equity) whereas return on equity is income/equity (without debt).
To calculate the net profit/losses and other accounts (Return On Capital Employed, Capital Employed, Working Capital, etc) of a particular business.
The return on capital employed is used to measures the profitability of a company and how its capital is obtained. Simply stated it is ROCE=Earnings before interest and tax divided by capital employed. Capital employed is a total of debt and equity, or assets and liabilities). The return on capital employed if high will always show that the company is operating well because it will usually be higher than the company cost. Once it is lower than the company cost, something is not being done right, and the company begins to lose money and value.
Kan plan
returned on capital employed the money money that is going in and out your mums fanny. there are many factors to this. They are, the fanny might be black, hairy, spotty, and even goowwyy.