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Why is decreasing ROCE bad?

Updated: 9/16/2023
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Q: Why is decreasing ROCE bad?
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What does the acronym ROCE stand for?

The acronym ROCE stands for "return on capital employment". The term ROCE is used in accounting to refer to the ratio of efficiency and profitability to capital investments.


What is ROCE?

it stands for return on capital employed...


What is meant by ROCE?

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What is the remuneration of capital?

It is similar to Return on capital employed (ROCE).


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Lion féroce.


What was francesco redi hypothesis about the apperance of maggots?

that is just comes out in roce meat


What are the disadvantages of return on capital employed?

ranking is difficult as this method gives a relative measure rather than an absolute measure.


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"Fierce" in English is féroce in French.


If ROCE is decreasing it means?

You have reached a level where further capital investment is counter productive. This may be because you have created an imbalance between labour and capital, or that you have reached a point where economies of scale no longer apply. This may be a point where the capital employed needs to make a step increase, rather than a gradual increase.


What would happen if a company gets advances from customers and invests into short-term bank instruments Would it effect ROCE Thanks?

Yes, if a company would get advances from customers and invests in short term bank instruments it would effect ROCE.