For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. To calculate this metric for Gym Group, this is the ...

Big five ratios: Gross profit percentage, net profit percentage, inventory turnover rate, return on capital employed (ROCE ... Inventory turnover formula: \(\frac {\text{Cost of sales}} ...

There are a few key trends to look for if we want to identify the next multi-bagger. Firstly, we'll want to see ...

Firms often use it as a capital budgeting threshold for the required rate of return. The traditional formula for the cost of equity is the dividend capitalization model and the capital asset ...

What are the early trends we should look for to identify a stock that could multiply in value over the long term?

There are a few key trends to look for if we want to identify the next multi-bagger. Ideally, a business will show two trends; firstly a growing return on capital employed (ROCE) and secondly, an ...

There are a few key trends to look for if we want to identify the next multi-bagger. One common approach is to try ...

Image source: Getty Images. Simply put, the return on capital employed (ROCE) measures how much profit results from capital employed—that is, how much money the business needs to operate.

For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. To calculate this metric for Almunda Professionals, ...

To calculate this metric for Kratos Defense & Security Solutions, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.02 ...