Name: Return on Capital Employed (ROCE)

Definition: ROCE looks at how effectively the company uses all long-term capital — both debt and equity — to generate profits. It’s a good way to compare companies with different financing structures. Higher ROCE means the company makes good returns on every dollar invested in its business operations.

Interpretation:
• In '2021', B's return on capital employed was 11.1%, indicating returns achieved on invested capital. Industry average for Precious Metals in '2021' stood at -4.0%.
• In '2022', B's return on capital employed was 4.7%, indicating returns achieved on invested capital. The decline from '2021' may indicate some operational or financial challenges. Industry average for Precious Metals in '2022' stood at 1.8%. Industry average increased by 5.8% compared to previous year.
• In '2023', B's return on capital employed was 7.3%, indicating returns achieved on invested capital. The increase since '2022' reflects strengthening financial performance. Industry average for Precious Metals in '2023' stood at -9.5%. Industry average declined by 11.3% from previous year.
• In '2024', B's return on capital employed was 11.2%, indicating returns achieved on invested capital. The increase since '2023' reflects strengthening financial performance. Industry average for Precious Metals in '2024' stood at -10.4%. Industry average declined by 1.0% from previous year.
Overall, B's return on capital employed has been volatile but generally stable over the past 4 years.

Formula: ROCE = EBIT / (Total Assets - Current Liabilities)

Good Range: Often 8%-20%.