ROE vs ROCE | Return on Equity v/s Return on Capital Employed |

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[thefungkupanta]

So why do we consider EBIT in ROCE and not PAT? I think this was not explained. Simple answer = you have to pay interests on the debt and hence we take EBIT while in the other case, you don't have to pay any interests on equity.

[hwealthwellnesscenter]

You are right and you mean to say Assuming company is debt free. Still there will difference. In ROE it is net income is divided by equity capital and in ROCE it is EBIT actually will become EBT divided by equity capital since no debt is there.

[sharadsalokhe]

VERY NICE PRESENTATION. THANK YOU SIR.

[depanjannath]

Absolutely correct explanation.Well done

[MrVeer]

Thanks for the video.
Some analysts include debt too in the equity amount while calculating ROE. Any comments ?

[chetan]

Very well explained. couldn't find comparison video like this.. was confused between both. 👍

[manojrk]

Dear Sir, One question... Lets say stock A has low P/E, P/B and high ROCE, ROE and Div yld compared to Stock B. But however the stock B has higher CGAR for 10 Years or 5 Years even 3 years as well. How do you choose between these two since CAGR is better and stock price growth is better in Stock B compared to Stock A. Here i'm comparing for Tata steel and JSW steel which are in same sector and how to choose the right stock based on fundamental analysis.

[dibeshagarwala]

Wow very nicely explained such market related jargons..we want more such analysis videos

[zillionconstruction]

Sir, I wish to know, in the company show the investment in balance sheet but how could I know company where has invested and valuation of the investment.

[sitaramdangi]

Sir किसी company ka fundamental kaise pta kare is par video banaye

[ankitlanjekar]

I have rarely seen this kind of efforts in youtube teaching videos, you are truly a gem.
Also found this old video of urs after watching like almost every video u uploaded in past year.

You are truly a example of just "keep doing good work, doesn't matter anyone notices or not". ofcourse I am talking about the scenario of 2 years ago.
Big fan Parimal Sir ❤️

[choudhary]

shareholders equity means shareholders portion/stake in a company

[vinbat]

Please give the break up of capital employed. Should we include cash in hand while calculating capital employed?

[chiragnankani]

Bt how to use it..kitna hona chayie km ya zyada for picking a better stock??

[gopinaydu]

Hi, I am regular watch your videos is very nice information. I would like to know which website provide Indian stock dividend yield average last five years. Pls make a video on this subject. Thank you.

[ng]

What is the minimum recommende value for ROCE and ROE for picking a stock ?

[royalchinarajesh]

Excellent knowledgeable video Sir 👍
Thanks

[shrenikshah]

Sir, could you please explain, interglobe aviation scenario?

[mosinmokashi]

Shareholder baniye not other jo aapne kaha Sahi kaha.

[ankitagarwal]

Tata Chemicals & Tata Global Beverage merger par video banayie sir