Explain performance ratios - return on capital employed, Strategic Management

Assignment Help:

Q. Explain Performance ratios - Return on capital employed?

Return on capital employed (ROCE)    = (Profit before interest and tax (PBIT) / Capital employed) x 100%    

The ROCE measures profitability and shows how well the business is utilising its capital to generate profits.  Capital employed is debt and equity.  Equity is shareholders' funds (share holders' funds) and debt is noncurrent liabilities. Capital employed can be found from the statement of financial position by taking the shareholders' funds (share capital and reserves) and long term debt.


Related Discussions:- Explain performance ratios - return on capital employed

Three stage transformation model of inputs, Product manufacturing operation...

Product manufacturing operations can be described as a three stage transformation model of inputs. Inputs Inputs are intangible. Unlike a traditional product, a servic

Strategy plan that includes resource implications, a) Way a suitable struct...

a) Way a suitable structure for a strategy plan that make sures appropriate participation from all stakeholders of an organization. b) Make criteria for reviewing potential option

Investigation of potential solutions, Investigation of potential solutions ...

Investigation of potential solutions The investigation of potential software solutions must involve what is common practice in the industry. Consider the following questions:

Linking strategic organizational, Linking Strategic Organizational Initiati...

Linking Strategic Organizational Initiatives to Purpose, Mission, and Vision Select an existing business that is entering into a new or emerging market for that company. You may

Future organisation strategy, The company is now aggressively working towar...

The company is now aggressively working towards being the largest retail chain in the country and also being first in profitability.  At the same time the company is exploring maki

Formal planning, is formal planning hinder for success

is formal planning hinder for success

Limitations of economic value added, Limitations of economic value added (E...

Limitations of economic value added (EVA) -  Not well understood by users of accounts. -  Divisions of different sizes cannot be relatively compared. Similarities of EV

Activities in strategic management process, a) identify and explain the key...

a) identify and explain the key activities in the strategic management process. b) why do businesses need to go international .?

Profile international markets, Using online research and the resources on t...

Using online research and the resources on the Student Portal, select and undertake market research of 2 possible "emerging economy" countries where Eatmore & Green might be able t

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd