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', CW's return on capital employed was 11.6%, indicating returns achieved on invested capital. Industry average for Industrial Machinery/Components in '2021' stood at -12.1%.
• In '2022', CW's return on capital employed was 12.6%, indicating returns achieved on invested capital. The increase since '2021' reflects strengthening financial performance. Industry average for Industrial Machinery/Components in '2022' stood at -9.8%. Industry average increased by 2.3% compared to previous year.
• In '2023', CW's return on capital employed was 13.5%, indicating returns achieved on invested capital. The increase since '2022' reflects strengthening financial performance. Industry average for Industrial Machinery/Components in '2023' stood at -18.6%. Industry average declined by 8.8% from previous year.
• In '2024', CW's return on capital employed was 14.6%, indicating returns achieved on invested capital. The increase since '2023' reflects strengthening financial performance. Industry average for Industrial Machinery/Components in '2024' stood at -20.0%. Industry average declined by 1.4% from previous year.
Overall, CW's return on capital employed has steadily improved over the past 4 years.

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

Good Range: Often 8%-20%.