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

Sanlam, write an essay of approximately 1500 words in which you critically ...

write an essay of approximately 1500 words in which you critically analyse and evaluate the value innovation strategy that sanlam opted for in their 2009 blue star financial advise

Define the concept of strategic performance management, (a) Define the conc...

(a) Define the concept of strategic performance management.  (b) Explain how the Balanced Score Card (BSC) is used to connect strategic planning to performance measurement in

•, • Why should resources be a concern in a global strategy

• Why should resources be a concern in a global strategy

Diffrence between ROCE and RI, Q. Diffrence between ROCE and RI? Both R...

Q. Diffrence between ROCE and RI? Both ROCE and RI are good measures to use when assessing financial performance, since both consider the capital invested, as well as the profi

Divisional structures – product organisation, Q. Divisional structures – pr...

Q. Divisional structures – product organisation? The functional structure is normally adopted by an entrepreneurial structure e.g. small business, because the organisation grow

Show the behavioural aspects when implementing budgets, Q. Show the behavio...

Q. Show the behavioural aspects when implementing budgets? The following behavioural aspects could arise when implementing budgets -  Budgets seen as a 'penny pinching' e

Zachman framework, Discuss the following quotation and please provide ...

Discuss the following quotation and please provide examples. "Enterprise Architecture frameworks such as the Zachman Framework are essentially conceptual skeletons tha

Material facts - sample case briefing, Material Facts: The defendant'...

Material Facts: The defendant's son held an "open invitation" party at  his  parent's home.  Guests, to include minors, were  encouraged  to  "bring their own  bottle." The p

Incorporate strategic career planning, What outcomes are being assessed ...

What outcomes are being assessed 1.  Demonstrate to a prescribed acceptable industry level service skills within a tourism/hospitality operation (b) 2.  Recognise and examine

Restructuring, What is the difference between restructuring, Reengineering ...

What is the difference between restructuring, Reengineering and Development

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