Financial Ratios
Return on Capital Employed
Definition
What is Return on Capital Employed?
Operating profit divided by capital employed under the stated definition.
Example in practice
How This Looks in Practice
An industrial company compares EBIT with equity plus long-term debt.
Keep learning
Related Terms
Financial Ratios
Gross Margin
Gross profit expressed as a percentage of revenue.
Financial RatiosOperating Margin
Operating profit expressed as a percentage of revenue.
Financial RatiosEBITDA Margin
EBITDA expressed as a percentage of revenue.
Equity ValuationEarnings Per Share
Net income attributable to ordinary shareholders divided by weighted average ordinary shares.