Financial Ratios
Return on Capital Employed
Definition
What is Return on Capital Employed?
Operating profitProfit from core operations after operating expenses but before financing costs and tax. divided by capital employed under the stated definition.
Example in practice
How This Looks in Practice
An industrial company compares EBIT with equity plus long-term debtBorrowings due more than one year from the reporting date..
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Related Terms
Financial Ratios
Gross Margin
Gross profit expressed as a percentage of revenue.
Financial RatiosOperating Margin
Operating profit expressed as a percentage of revenue.
Financial RatiosEBITDA Margin
EBITDA expressed as a percentage of revenue.
Equity ValuationEarnings Per Share
Net income attributable to ordinary shareholders divided by weighted average ordinary shares.