Return on Capital Employed Calculator

✖Earnings Before Interest and Taxes is a measure of a firm's profit that includes all expenses except interest and income tax expenses.ⓘ Earnings Before Interest and Taxes [EBIT]			+10% -10%
✖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.ⓘ Total Assets [TA]			+10% -10%
✖Current Liabilities are the company debts or obligations that are due within one year.ⓘ Current Liabilities [CL]			+10% -10%

✖Return on capital employed is a ratio that depicts the profitability of a company’s capital investments.ⓘ Return on Capital Employed [ROCE]

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Formula

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Return on Capital Employed

Formula

`"ROCE" = ("EBIT"/("TA"-"CL"))*100`

Example

`"463.9175"=("450000"/("100000"-"3000"))*100`

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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 4 Variables

Variables Used

Return on capital employed - Return on capital employed is a ratio that depicts the profitability of a company’s capital investments.
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 ≈ 463.9175 <-- Return on capital employed

(Calculation completed in 00.004 seconds)

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< 22 Business Calculators

Macaulay Duration

Go Macaulay Duration = sum(x,1,5,Cash Flow Number,((Cash Flow/(1+Yield to Maturity (YTM)/Compounding Periods))^Cash Flow Number))*(Time in Years/Present Value)

Weighted Average Cost of Capital

Go Weighted average cost of capital = ((Market value of the firm’s equity/Firm Value)*Cost of Equity)+(((Market Value of the Firm’s Debt/Firm Value)*Cost of Debt)*(1-Corporate Tax Rate))

Total Inventory Cost

Go Total Inventory Cost = Carrying cost per unit per year*(Quantity of Each Order/2)+Fixed cost per order*(Demand in units per year/Quantity of Each Order)

Acid Test Ratio

Go Acid Test Ratio = (Cash+Accounts Receivable+Short Term Investments)/Current Liabilities

Economic Order Quantity

Go Economic Order Quantity = ((2*Fixed cost per order*Demand in units per year)/Carrying cost per unit per year)*(1/2)

Return on Capital Employed

Go Return on capital employed = (Earnings Before Interest and Taxes/(Total Assets-Current Liabilities))*100

Diluted Earnings per Share

Go Diluted Earnings per Share = Net Income/(Average Shares+Other Convertible Securities)

Inventory Shrinkage

Go Inventory Shrinkage = ((Recorded Inventory-Actual Inventory)/Recorded Inventory)*100

Modified Duration

Go Modified Duration = Macaulay Duration/(1+Yield to Maturity (YTM)/Coupon Periods)

Target Inventory Investment

Go Target Inventory Investment = Projected Annual Cost of Goods Sold from Stock Sales/Target Inventory Turnover

Retention Ratio

Go Retention Ratio = (Net Income-Dividend)/Net Income

Contribution Margin per Unit

Go Contribution Margin per Unit = Sales Price per Unit-Variable Cost per Unit

Operating Expense Ratio

Go Operating Expense Ratio = (Operating Expense/Gross Operating Income)*100

Break-Even Point

Go Break Even Point = Fixed Costs/Contribution Margin per Unit

Estimated Earnings

Go Estimated Earnings = Forecasted Sales-Forecasted Expense

Debt Coverage Ratio

Go Debt Coverage Ratio = Net Operating Income/Debt Service

Dividends Per Share

Go Dividends Per Share = Total Dividends/Number of Shares

Solvency Ratio

Go Solvency Ratio = (Shareholders Fund*100)/Total Assets

Estimate at completion

Go Estimate at Completion = Actual Cost+Bottom up ETC

Percentage off

Go Percentage Off = 1-(Selling Price/Original Price)

Preferred Stock

Go Preferred Stock = Dividend/Discount Percentage

Days in Inventory

Go Days in Inventory = 365/Inventory Turnover

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 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) & 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 & 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) & Current Liabilities (CL). With our tool, you need to enter the respective value for Earnings Before Interest and Taxes, Total Assets & Current Liabilities and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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