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Return on Capital Employed (ROCE)

ROCE is a good indicator was to how well a company’s management is using its business assets to generate earnings. ROCE = EBIT / Average Capital Employed where EBIT is the Earnings Before Interest and Tax Example: Petronas Dagangan Bhd PETDAG’s earnings for the year ending 31-Mar-07 were reported as follows: As per the above, [...]

[ More ] October 13th, 2008 | 4 Comments | Posted in Tutorials |