Return on Capital Employed (ROCE ... useful for evaluating companies in capital-intensive sectors. The financial ratio is essential for investors because it goes beyond just net profit.
Definition: The Return On Equity ratio essentially measures the rate of return that the owners of common stock of a company receive on their shareholdings. Return on equity signifies how good the ...
While the P/E ratio is useful in valuing a stock, the Earnings Yield provides insight into the rate of return on the investment. Consider the following example: The stock of Company X is trading ...
Return on Capital Employed (ROCE) (%): While discussing the balance sheet we have already pointed out that the capital employed (i.e. shareholder’s fund +loan fund) is equal to the net assets (i.e.