Thursday, July 31, 2014

Profitability Indicator Ratios: Return On Capital Employed (ROCE)

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Series : Ratio Analysis    (10 th Post)
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This Ratio helps us to understand how profitable a company with in relation to the capital invested.The Ratio ROCE (Return on Capital Employed) ,A Higher ROCE ratio means more efficient use of the capital else its not managing effectively.
The ROCE is expressed as a percentage


Formula:  Return On Capital Employed % = Earnings before Interest and Tax (EBIT) / Capital Employed



Example:
Go to  Moneycontrol.com  Website  here is  an Online Link for the same http://www.moneycontrol.com/financials/relianceindustries/ratios/RI#RI                                       
Select the Ratios under the Financials Tab  & look for the  “Profitability Ratios “


Next Post on Ratio Analysis:  Debt Ratios

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In my quest for learning value investing I came across this interesting article and thought would like to share this with the community.
Comments  / Improvements and points worth considering are welcome

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1 comment:

  1. Debt ratio and other important ratio helps in performing quality fundamental analysis and learn whether it will be good to invest here or not. Experts suggested mcx tips , trading tips helps traders to improve their returns from market.

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