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', EHC's return on capital employed was 10.9%, indicating returns achieved on invested capital. Industry average for Hospital/Nursing Management in '2021' stood at 12.4%.
• In '2022', EHC's return on capital employed was 12.4%, indicating returns achieved on invested capital. The increase since '2021' reflects strengthening financial performance. Industry average for Hospital/Nursing Management in '2022' stood at 5.8%. Industry average declined by 6.6% from previous year.
• In '2023', EHC's return on capital employed was 13.8%, indicating returns achieved on invested capital. The increase since '2022' reflects strengthening financial performance. Industry average for Hospital/Nursing Management in '2023' stood at 7.4%. Industry average increased by 1.6% compared to previous year.
• In '2024', EHC's return on capital employed was 15.6%, indicating returns achieved on invested capital. The increase since '2023' reflects strengthening financial performance. Industry average for Hospital/Nursing Management in '2024' stood at 8.2%. Industry average increased by 0.8% compared to previous year.
Overall, EHC's return on capital employed has been volatile but showed an upward trend over the past 4 years.

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

Good Range: Often 8%-20%.