en>Jesse V.: tags + general fixes, added orphan tag using AWB (8414)

2012-10-27T03:59:08Z

tags + general fixes, added orphan tag using AWB (8414)

← Older revision		Revision as of 05:59, 27 October 2012
Line 1:		Line 1:
	~~The writer~~'~~s [http://www~~.~~prayerarmor.com~~/~~uncategorized/dont-know-which-kind-~~of~~-hobby-~~to-~~take~~-~~up-read~~-the~~-following-tips/ free psychic~~] ~~name~~ is ~~Andera and she thinks~~ it ~~sounds fairly good~~. ~~As a lady what she really cheap psychic readings~~ ([~~http://ltreme~~.~~com/index~~.~~php?do~~=~~/profile-127790/info/ ltreme~~.~~com]) likes~~ is ~~fashion and she's been doing~~ it for ~~quite a while~~. ~~Alaska~~ is the ~~only place I've been residing~~ in ~~but now I'm considering other options~~. ~~Invoicing~~ is ~~what I do for a residing but I've usually needed my own company~~.~~<br><br>my website; online reader~~ ([~~http~~:~~//www.youronlinepublishers.com/authWiki/AdolphvhBladenqq www.youronlinepublishers.com~~])		{{distinguish\|Return on equity}}
			'''Return on capital employed''' is an accounting ratio used in finance, valuation, and accounting.

			==The formula==
			<math>\mathrm{ROCE} = \frac{\mbox{EBIT}}{\mbox{Capital Employed}}</math>

			(Expressed as a %)

			It is similar to [[Return on assets\|Return on Assets]] (ROA), but takes into account sources of financing. [[NOPAT\|Net Operating Profit After Tax]] (NOPAT) is equal to EBIT * (1 - tax) -- the return on the capital employed should be measured in after tax terms.

			===Operating income===
			EBIT stands for Earnings before interest and tax

			===Capital employed===
			In the denominator we have net assets or [[capital employed]] instead of total assets (which is the case of Return on Assets). Capital Employed has many definitions. In general it is the capital investment necessary for a business to function. It is commonly represented as [[asset\|total assets]] less [[current liabilities]] (or [[fixed assets]] plus [[working capital]]).

			ROCE uses the reported (period end) capital numbers; if one instead uses the average of the opening and closing capital for the period, one obtains '''Return on Average Capital Employed''' ('''ROACE''').

			==Application==
			'''ROCE''' is used to prove the value the business gains from its assets and liabilities. A business which owns lots of land will have a smaller ROCE compared to a business which owns little land but makes the same profit.

			It basically can be used to show how much a business is gaining for its assets, or how much it is losing for its liabilities.

			===Drawbacks of ROCE===
			The main drawback of ROCE is that it measures return against the book value of assets in the business. As these are depreciated the ROCE will increase even though cash flow has remained the same. Thus, older businesses with depreciated assets will tend to have higher ROCE than newer, possibly better businesses. In addition, while cash flow is affected by inflation, the book value of assets is not. Consequently revenues increase with inflation while capital employed generally does not (as the book value of assets is not affected by inflation)).

			==See also==
			*[[Cash flow return on investment]] (CFROI)
			*[[Return on operating capital]] (ROOC)
			*[[Return on invested capital]] (ROIC)
			*[[Return on equity]] (ROE)
			*[[Return on assets]] (ROA)
			*[[Economic value added]] (EVA)
			*[[Cash surplus value added]] (CsVA) index

			==References==
			{{Reflist}}

			{{Financial ratios}}

			[[Category:Financial ratios]]

en>Rcsprinter123: / using AWB

2012-01-14T12:18:30Z

/ using AWB

New page

The writer's [http://www.prayerarmor.com/uncategorized/dont-know-which-kind-of-hobby-to-take-up-read-the-following-tips/ free psychic] name is Andera and she thinks it sounds fairly good. As a lady what she really cheap psychic readings ([http://ltreme.com/index.php?do=/profile-127790/info/ ltreme.com]) likes is fashion and she's been doing it for quite a while. Alaska is the only place I've been residing in but now I'm considering other options. Invoicing is what I do for a residing but I've usually needed my own company.<br><br>my website; online reader ([http://www.youronlinepublishers.com/authWiki/AdolphvhBladenqq www.youronlinepublishers.com])

Characteristic sequence - Revision history

en>Jesse V.: tags + general fixes, added orphan tag using AWB (8414)

en>Rcsprinter123: / using AWB