Return on capital employed

Return on capital employed is a ratio that depicts the profitability of company’s capital investments. This ratio calculation indicates how efficiently a company generates revenue from its capital investments.

Profit before interest,tax dividends Fund

Total assets

Current liabilities

Formula:

Return on capital employed = ( p / ( a – l) ) * 100
Where,
p : the profit before interest,tax dividends
a : the total assets
l : the current liabilities

Return On Capital Employed

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