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', J's return on capital employed was 6.7%, indicating returns achieved on invested capital. Industry average for Military/Government/Technical in '2021' stood at 6.7%.
• In '2022', J's return on capital employed was 5.1%, indicating returns achieved on invested capital. The decline from '2021' may indicate some operational or financial challenges. Industry average for Military/Government/Technical in '2022' stood at -3.6%. Industry average declined by 10.3% from previous year.
• In '2023', J's return on capital employed was 6.2%, indicating returns achieved on invested capital. The increase since '2022' reflects strengthening financial performance. Industry average for Military/Government/Technical in '2023' stood at -37.6%. Industry average declined by 34.0% from previous year.
• In '2024', J's return on capital employed was 12.3%, indicating returns achieved on invested capital. The increase since '2023' reflects strengthening financial performance. Industry average for Military/Government/Technical in '2024' stood at 35.1%. Industry average increased by 72.7% compared to previous year.
Overall, J'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%.