Six things every investor should know about return on capital employed (ROCE)

Return on capital employed (ROCE) is a key ratio that can reveal lots of useful information about a firm. In this short guide, Tim Bennett explains how it works, when it is most useful and when it can let you down.

[Coriolanus]

That intro has no business going that hard. Fantastic

[prateekamarnani]

You Sir, have been the source where I learned this, not my college .Thanks .

[whitiewhiteman]

0, 2x0, 5x100=10
thx for sharing your knowledge and spending your time with and for people.
very enjoyable voice, nice and clear thoughts and much easier to understand as in german, for example.
regards from vienna

[peterbradshaw]

This reminds me of A level Accounting I taught myself and I had to memorise a whole load of ratios.

[trishanjitpoem]

Xclnt. I watch ur every vdo nd learn a lot. I m from India.

[arashrf]

Shouldn't we subtract current liabilities from the sum of Equities and debt? In other words is there a difference between ROCE and ROA?

[jordanhsy]

great job on the videos, I always look forward for a new one to come out. Keep up the great work!

[luqmanhrizal]

What about they spend half of net income in dividend? Should be the roce cut half?

[NicosMind]

When are you going to do more about DuPont analysis?

[Azhark]

Can you do financial ratio analysis, Why it declines and why it rises. Thanks

[FullMoonHatch]

If your looking at the ROCE over a 10 year project, would you use the averages over the 10 years in the calculations?

[westnash]

Almost impossible to find a good book on ROCE. Why is that?

[gajendrakc]

4:08
Is ROCE the measure of how much return is the investor going to make if they invest their money in some entity? Return might be different for debt or equity investors irrespective of the ROCE isn't it?

[loveanimals-]

Where would you get the "sales" number you talk about?

[grayfilms]

This is Return on Assets (ROA), not Return on Capital Employed (ROCE)

[sagheerahmed]

Tim have you done a video on UITs ( Unit Investment Trusts)?

[juliensteel]

Can you do a video on how and why companies buy their own stocks? Like Apple will do. Thanks

[sandbote]

Oh. I thought this was for Remote Direct Memory Access.

[Faiman]

He he Oh well at least summers here all 12 hours of it! :P

[olivierd.]

Hahaha ! any ratio used on its own is useless my friend 😂. You obviously have to look it into perspective of other ratios and this is one of the best to focus on as it encapsulates a lot of the business characteristics