The formula to calculate the Return on Capital Employed (ROCE) is:
\[ \text{ROCE} = \left( \frac{\text{Earnings Before Interest and Taxes}}{\text{Total Assets} - \text{Current Liabilities}} \right) \times 100 \]
Where:
Return on Capital Employed (ROCE) is a ratio that depicts the profitability of a company’s capital investments.
Let's assume the following values:
Using the formula:
\[ \text{ROCE} = \left( \frac{450000}{100000 - 3000} \right) \times 100 \]
Evaluating:
\[ \text{ROCE} = 463.92 \]
The Return on Capital Employed (ROCE) is 463.92%.
| Earnings Before Interest and Taxes | Total Assets | Current Liabilities | Return on Capital Employed |
|---|---|---|---|
| 400000 | 90000 | 3000 | 459.77% |
| 400000 | 95000 | 3000 | 434.78% |
| 400000 | 100000 | 3000 | 412.37% |
| 400000 | 105000 | 3000 | 392.16% |
| 400000 | 110000 | 3000 | 373.83% |
| 425000 | 90000 | 3000 | 488.51% |
| 425000 | 95000 | 3000 | 461.96% |
| 425000 | 100000 | 3000 | 438.14% |
| 425000 | 105000 | 3000 | 416.67% |
| 425000 | 110000 | 3000 | 397.20% |
| 450000 | 90000 | 3000 | 517.24% |
| 450000 | 95000 | 3000 | 489.13% |
| 450000 | 100000 | 3000 | 463.92% |
| 450000 | 105000 | 3000 | 441.18% |
| 450000 | 110000 | 3000 | 420.56% |
| 475000 | 90000 | 3000 | 545.98% |
| 475000 | 95000 | 3000 | 516.30% |
| 475000 | 100000 | 3000 | 489.69% |
| 475000 | 105000 | 3000 | 465.69% |
| 475000 | 110000 | 3000 | 443.93% |
| 500000 | 90000 | 3000 | 574.71% |
| 500000 | 95000 | 3000 | 543.48% |
| 500000 | 100000 | 3000 | 515.46% |
| 500000 | 105000 | 3000 | 490.20% |
| 500000 | 110000 | 3000 | 467.29% |