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', E's return on capital employed was 15.9%, indicating returns achieved on invested capital. Industry average for Oil & Gas Production in '2021' stood at 26.6%.
• In '2022', E's return on capital employed was 30.6%, indicating returns achieved on invested capital. The increase since '2021' reflects strengthening financial performance. Industry average for Oil & Gas Production in '2022' stood at 23.9%. Industry average declined by 2.7% from previous year.
• In '2023', E's return on capital employed was 17.6%, indicating returns achieved on invested capital. The decline from '2022' may indicate some operational or financial challenges. Industry average for Oil & Gas Production in '2023' stood at 14.3%. Industry average declined by 9.7% from previous year.
• In '2024', E's return on capital employed was 14.3%, indicating returns achieved on invested capital. The decline from '2023' may indicate some operational or financial challenges. Industry average for Oil & Gas Production in '2024' stood at 9.8%. Industry average declined by 4.4% from previous year.
Overall, E'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%.