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Return on capital employed Solution

STEP 0: Pre-Calculation Summary
Formula Used
return_on_capital_employed = (Earnings Before Interest and Taxes/(Total Assets-Current Liabilities))*100
ROCE = (EBIT/(TA-CL))*100
This formula uses 3 Variables
Variables Used
Earnings Before Interest and Taxes- Earnings Before Interest and Taxes is a measure of a firm's profit that includes all expenses except interest and income tax expenses.
Total Assets- Total Assets are the final amount of all gross investments, cash and equivalents, receivables, and other assets as they are presented on the balance sheet.
Current Liabilities- Current Liabilities are the company debts or obligations that are due within one year.
STEP 1: Convert Input(s) to Base Unit
Earnings Before Interest and Taxes: 450000 --> No Conversion Required
Total Assets: 100000 --> No Conversion Required
Current Liabilities: 3000 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
ROCE = (EBIT/(TA-CL))*100 --> (450000/(100000-3000))*100
Evaluating ... ...
ROCE = 463.917525773196
STEP 3: Convert Result to Output's Unit
463.917525773196 --> No Conversion Required
FINAL ANSWER
463.917525773196 <-- Return on capital employed
(Calculation completed in 00.000 seconds)

10+ Business Calculators

Return on capital employed
return_on_capital_employed = (Earnings Before Interest and Taxes/(Total Assets-Current Liabilities))*100 Go
Diluted Earnings per Share
diluted_earnings_per_share = Net Income/(Average Shares+Other Convertible Securities) Go
Retention Ratio
retention_ratio = (Net Income-Dividend)/Net Income Go
Contribution Margin per Unit
contribution_margin_per_unit = Sales Price per Unit-Variable Cost per Unit Go
Estimated Earnings
estimated_earnings = Forecasted Sales-Forecasted Expense Go
Debt Coverage Ratio
debt_coverage_ratio = Net Operating Income/Debt Service Go
Dividends Per Share
dividends_per_share = Total Dividends/Number of Shares Go
Solvency Ratio
solvency_ratio = (Shareholders Fund*100)/Total Assets Go
Preferred Stock
preferred_stock = Dividend/Discount Rate Go
Days in Inventory
days_in_inventory = 365/Inventory Turnover Go

Return on capital employed Formula

return_on_capital_employed = (Earnings Before Interest and Taxes/(Total Assets-Current Liabilities))*100
ROCE = (EBIT/(TA-CL))*100

How to Calculate Return on capital employed?

Return on capital employed calculator uses return_on_capital_employed = (Earnings Before Interest and Taxes/(Total Assets-Current Liabilities))*100 to calculate the Return on capital employed, Return on capital employed is a ratio that depicts the profitability of a company’s capital investments. Return on capital employed and is denoted by ROCE symbol.

How to calculate Return on capital employed using this online calculator? To use this online calculator for Return on capital employed, enter Earnings Before Interest and Taxes (EBIT), Total Assets (TA) and Current Liabilities (CL) and hit the calculate button. Here is how the Return on capital employed calculation can be explained with given input values -> 463.9175 = (450000/(100000-3000))*100.

FAQ

What is Return on capital employed?
Return on capital employed is a ratio that depicts the profitability of a company’s capital investments and is represented as ROCE = (EBIT/(TA-CL))*100 or return_on_capital_employed = (Earnings Before Interest and Taxes/(Total Assets-Current Liabilities))*100. Earnings Before Interest and Taxes is a measure of a firm's profit that includes all expenses except interest and income tax expenses, Total Assets are the final amount of all gross investments, cash and equivalents, receivables, and other assets as they are presented on the balance sheet and Current Liabilities are the company debts or obligations that are due within one year.
How to calculate Return on capital employed?
Return on capital employed is a ratio that depicts the profitability of a company’s capital investments is calculated using return_on_capital_employed = (Earnings Before Interest and Taxes/(Total Assets-Current Liabilities))*100. To calculate Return on capital employed, you need Earnings Before Interest and Taxes (EBIT), Total Assets (TA) and Current Liabilities (CL). With our tool, you need to enter the respective value for Earnings Before Interest and Taxes, Total Assets and Current Liabilities and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
How many ways are there to calculate Return on capital employed?
In this formula, Return on capital employed uses Earnings Before Interest and Taxes, Total Assets and Current Liabilities. We can use 10 other way(s) to calculate the same, which is/are as follows -
  • contribution_margin_per_unit = Sales Price per Unit-Variable Cost per Unit
  • diluted_earnings_per_share = Net Income/(Average Shares+Other Convertible Securities)
  • days_in_inventory = 365/Inventory Turnover
  • debt_coverage_ratio = Net Operating Income/Debt Service
  • dividends_per_share = Total Dividends/Number of Shares
  • estimated_earnings = Forecasted Sales-Forecasted Expense
  • preferred_stock = Dividend/Discount Rate
  • retention_ratio = (Net Income-Dividend)/Net Income
  • return_on_capital_employed = (Earnings Before Interest and Taxes/(Total Assets-Current Liabilities))*100
  • solvency_ratio = (Shareholders Fund*100)/Total Assets
Where is the Return on capital employed calculator used?
Among many, Return on capital employed calculator is widely used in real life applications like {FormulaUses}. Here are few more real life examples -
{FormulaExamplesList}
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