Return on Capital Employed , ROCE (skrót)

To show the true rate of return on capital employed.

The average annual return on capital employed was 7 percent.

It also predicts a 20% return on capital employed in 1993.

Yet there remain worries about the likely return on capital employed.

Its rate of return on capital employed, which the company says is the best indication of performance and cost management, reached 31 percent last year.

He says: 'There is no place in the group for units that are subsidised or don't make the right sort of return on capital employed.'

Pre-tax profits were £503 million in 1989 (see Table 11.7), although at 16 per cent return on capital employed this is an extremely poor performance.

Return on capital employed is an accounting ratio used in finance, valuation, and accounting.

The return on capital employed is expected to be lower than the cost of capital in the first financial year of ownership.

Ratio analysis, which produces such measures as return on capital employed and liquidity measures, is the best example of this.

He, like others, is pressing companies to set pay based on measures that are harder to fudge, like return on capital employed.

The return on capital employed, which is the long-term measure of the financial health of the company, is affected by both the other ratios.

He decentralized management, giving line managers greater operating authority and a clear-cut financial target: 12 percent return on capital employed.

Return on capital employed - this calculates net profit as a percentage of the total capital employed in a business.

Return on capital employed or return on assets managed would be a more reliable measure than simple return on equity.

DSA aims to break even on statutory fees over a five-year period after achieving at least a 3.5 per cent return on capital employed.

Return on capital employed (ROCE)

Return on Capital Employed, used in finance as a measure of the returns that a company is realising from its capital employed

The two most commonly referred to traditional techniques are the accounting rate of return on capital employed (ROCE) and the payback period.

Capital employed increased from £152000 to £591 000, and the return on capital employed,(ROCE) from only 30% in 1982 to 74% by 1984.

Management are focusing on return on capital employed (ROCE), a measure that compares the company's earnings with the amount of capital invested in the business.

Panić and Vernon (1975) also found the rate of return on capital employed to be a significant variable in affecting investment in five of the six manufacturing industries studied.

On the other hand, the extent to which the return on capital employed calculation can measure operating capability, given that the accounts are not current cost accounts, is debatable.

Its return on capital employed has consistently led the industry, though some analysts say Royal Dutch/Shell, BP and TotalFinaElf may soon challenge that supremacy.

They may have a requirement where they are looking for a very high return on capital employed and need to attract and retain the very best people in order to achieve that.