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Formula. Why is ROCE important?

Formula. Why is ROCE important?

When choosing which company to invest in, what should a smart investor look at? It is common to analyze income statements as well as key financial ratios like Return on Capital Employed(ROCE), Return-on-Invested Capital/ROIC, Return On Equity (ROE), Return and Assets (ROA). These four essential ratios are extremely helpful when it comes to a well-defined evaluation of a company’s worth. These indicators were the basis of every successful investment decision.

Today we will take a look at Return on capital employed (ROCE) — a vital metric used to compare a company’s net… Read full author’s opinion and review in blog of #LiteFinance

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