Return on capital employed %

Return on capital employed (ROCE) is a financial metric that measures a company's profitability from its capital employed. It calculates the return generated by a company's capital, which includes shareholders' equity, debt, and minority interest. ROCE provides insight into a company's ability to generate earnings from its capital investments. This metric considers the employed capital base over two fiscal periods (t1 and t2).

Return on capital employed % = Operating income / (Average total assets - Average total current liabilities)

If the denominator is negative, the formula will return an empty value.

• Average total assets = ( Total assets (t1) + Total assets (t2) ) / 2
• Average total current liabilities = ( Total current liabilities (t1) + Total current liabilities (t2) ) / 2

Two fiscal periods average means the average value between two comparable periods: for years it is the last two years, for half-years it is H1 2024 and H1 2023, for quarters it is Q2 2024 and Q2 2023. For quarterly and semi-annual periodicity values, the Trailing Twelve Months (TTM) value of Operating income (sum of the last 4 quarters) is used in the numerator.

ROCE provides insight into how well a company generates profits from its capital and is particularly useful for comparing the performance of companies within the same industry. A higher ROCE indicates more efficient use of capital, suggesting that the company is generating more profit per unit of capital employed.