2007-03-22 19:35:34 · 5 answers · asked by pp 1 in Business & Finance ➔ Other - Business & Finance
In brief and simple words, it is periodical (normally yearly basis) net profit/net income earned on the capital deployed in any venture./ business. Borrowed funds are to be excluded after providing for their interest charge.
2007-03-22 19:42:20 · answer #1 · answered by helpaneed 7 · 3⤊ 0⤋
Suppose that the capital involved in an operation is one million dollars. The resulting profit for a year is $60,000. The return on capital is 6%.
2007-03-22 19:43:19 · answer #2 · answered by Anonymous · 0⤊ 0⤋
On simple terms, Return On Capital Employed (RoCE) means the profit a business generates from a certain amount of investment in a business.
See the link for further information
http://www.google.com/search?hl=en&q=define%3A+RoCE
2007-03-22 19:44:01 · answer #3 · answered by Quizzing 2 · 0⤊ 0⤋
Profit or Loss. Entire business gambit revolves around capital only. The return on investment is either profit or Loss.
2007-03-26 06:26:24 · answer #4 · answered by Srirambhaktha 3 · 0⤊ 0⤋
ROE is derived by taking the Net Income and dividing it by the Stockholders Equity. The Stockholders Equity is found on the balance sheet and the Net Income will appear on the Cash Flow sheet.
2016-03-29 00:34:37 · answer #5 · answered by Anonymous · 0⤊ 0⤋