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

Factors about transfer pricing, Q. Factors about transfer pricing? ...

Q. Factors about transfer pricing? Does the supplier have a solid track record for delivery e.g. references from other satisfied customers in terms of the quality of servic

Beyond budgeting approach, The beyond budgeting approach may include the fo...

The beyond budgeting approach may include the following: Use of rolling budgets concentrating on cash forecasts and not cost control. Budgets revised more frequently

What are the benefits of elearning, Question : (a). How would you cat...

Question : (a). How would you categorise eBusiness/ eCommerce? (b). Explain how the use of Cookies in eBusiness/ eCommerce may impede on the privacy of an individual

Improve the maintenance strategy in industries, Question: (a) Define ...

Question: (a) Define the term ‘Maintenance'. How does it differ from strategic maintenance? Explain, briefly, the meaning of Maintenance Mix and state how it can be develope

Show the merits of using return on investment, Q. Show the Merits of using ...

Q. Show the Merits of using return on investment? Merits of using return on investment (ROI) -  Relative (percentage) measure so performance can be compared 'relatively' f

Capital requirements directive, A squeeze on credit fall in house prices an...

A squeeze on credit fall in house prices and tumbling stock markets are all reinforcing a slump in consumer confidence, consumption and investment in the EU FS sector. In order to

Feedback control - appraisal, Feedback is a process where part of the outpu...

Feedback is a process where part of the output of a system is measured and returned as input to regulate the systems further output.   Feedback normally involves gathering informat

Management and Strategy, #quesWhat features of Johnson & Johnson''s "Our Cr...

#quesWhat features of Johnson & Johnson''s "Our Credo" made it so effective in guiding J&J''s response to the Tylenol tampering crisis? Where was J&J''s "Our Credo" in the run-up t

Blue ocean starategy, Ask quest''Blue Ocean Strategy’ a. What is it? b. Wh...

Ask quest''Blue Ocean Strategy’ a. What is it? b. What are its characteristics? c. If you were to develop a Blue Ocean Strategy for a firm of your choice (any industry, any size,

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