Fundamental Library

Accumulated Depreciation
Adjustments (Cash Flow from Operating Activities)
Advance from Customers
Asset Turnover
Bonus Issue
Book Value / Equity Capital
Buyback
CAGR (Compound Annual Growth Rate)
Capital Work in Progress (CWIP)
Cash and Cash Equivalents
Cash Conversion Days
Cash Flow Per Share (CF/Share)
Cash From Financing
Cash From Investing
Cash From Operations
Chairman
Changes in Working Capital
Common Sized
Consolidated Financial Statements
Current Assets
Current Investments
Current Liabilities
Current Ratio
D/A
D/E
Debt
Depreciation
DII
Discount Rate
Discounted Cash Flow (DCF)
Dividend Yield
Dividend/Share
Dividends
EBIT
EBITDA
EBT
Effective Tax Rate
Employee Cost
EPS
EV/EBITDA
Exceptional Items (Income Statement)
Executive Director
Face Value
Fair Value
FCF Per Share
FII (Foreign Institutional Investor)
Financial Leverage Multiplier in Du Pont Analysis
Free Cash Flow Yield
Government Holding
Gross Block
Implied Growth Rate
Independent Directors
Institutional Holdings
Interest Coverage Ratio
Interest Expense
Inventories
Inventory Days
Long Term Loans & Advances
Long Term Provisions
Manufacturing Expenses
Market Cap
Net Block
Net Cash Flow
Net Profit
Non-Current Assets
Non-Current Investments
Non-Current Liabilities
Non-Executive Director
Non-Independent Directors
NPM (Net Profit Margin)
OPM (Operating Profit Margin)
Other Current Assets
Other Current Liabilities
Other Expense
Other Income
Other Non-Current Assets
P/B
P/E
P/S
Payable Days
PEG
Power Fuel Cost
Promoter Pledge
Promoters
PV (Present Value)
Quarterly Results
Raw Material Cost
Receivable Days
Reserves
Retail/Public Shareholding
Rights Issue
ROA (Return on Assets)
ROCE
ROE
Sales
Secured Loans
Selling and Distribution Costs
SGA costs
Share Capital
Shareholding Pattern
Short Term Borrowings
Short term loan and advances
Short Term Provisions
Standalone Financial Statements
Stock Splits
Tax
Tax %
Total Expense
Trade Payables
Trade Receivables
Unsecured Loans

ROCE

Explanation: Return on Capital Employed (ROCE) is a financial ratio that measures the efficiency and profitability of a company in generating returns from its capital investments. It indicates how well a company utilizes its capital to generate profits before considering the effects of taxes and interest expenses. ROCE is calculated by dividing the company’s earnings before interest and taxes (EBIT) by its capital employed (total assets minus current liabilities) and is expressed as a percentage. A higher ROCE indicates better efficiency in utilizing capital to generate profits.

Example: TCS has an ROCE of 64.44% in FY23, which indicates that for every rupee of capital employed in the business, it generates a profit of approximately 64.44 paise before accounting for interest and taxes. This high ROCE suggests that TCS efficiently utilizes its capital investments to generate significant returns for its shareholders. It reflects the company’s strong operational performance and effective management of its capital resources. Investors and analysts often use ROCE to evaluate a company’s ability to generate profits from its capital investments and to compare its performance with peers and industry benchmarks.

You can view the ROCE for any company on Radar under Profitability Ratios in the Ratios section.

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