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', D's return on capital employed was 2.9%, indicating returns achieved on invested capital. Industry average for Electric Utilities: Central in '2021' stood at 4.2%.
• In '2022', D's return on capital employed was 1.5%, indicating returns achieved on invested capital. The decline from '2021' may indicate some operational or financial challenges. Industry average for Electric Utilities: Central in '2022' stood at 2.0%. Industry average declined by 2.2% from previous year.
• In '2023', D's return on capital employed was 5.2%, indicating returns achieved on invested capital. The increase since '2022' reflects strengthening financial performance. Industry average for Electric Utilities: Central in '2023' stood at -0.3%. Industry average declined by 2.3% from previous year.
• In '2024', D's return on capital employed was 4.4%, indicating returns achieved on invested capital. The decline from '2023' may indicate some operational or financial challenges. Industry average for Electric Utilities: Central in '2024' stood at 1.7%. Industry average increased by 2.0% compared to previous year.
Overall, D'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%.