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
I guess it means DEBT + EQUITY is (10) + 90 = 100. No matter whether the capital was borowed or has come from shareholderrs, it's still the capital employed - you use it to make money.
You could, just to get a feel of whether ROCE has been growing, I think. Other than that, averaging it doesn't make much sense over a long term, in my opinion. Someone correct me if I am wrong.
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?
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