Capital Employed refers to the total capital investment necessary to run a company effectively, either represented by the sum of shareholders' equity and long-term debt, or by the sum of fixed assets and net current assets. It plays a crucial role in ratio analysis, particularly for calculating the Return on Capital Employed (ROCE).
Comprehensive coverage of Return on Capital Employed (ROCE), including its definition, historical context, formulas, importance, and practical applications.
An in-depth guide to Return on Capital Employed (ROCE), discussing its calculation, interpretation, and practical examples to measure company profitability and capital efficiency.
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