LCM of two numbers

Return on Capital Employed Calculator

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

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Return on Capital Employed Formula

LaTeX Go

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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