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', NWL's return on capital employed was 9.3%, indicating returns achieved on invested capital. Industry average for Plastic Products in '2021' stood at -4.2%.
• In '2022', NWL's return on capital employed was 3.9%, indicating returns achieved on invested capital. The decline from '2021' may indicate some operational or financial challenges. Industry average for Plastic Products in '2022' stood at -4.7%. Industry average declined by 0.5% from previous year.
• In '2023', NWL's return on capital employed was -2.8%, indicating returns achieved on invested capital. The decline from '2022' may indicate some operational or financial challenges. Industry average for Plastic Products in '2023' stood at -65.4%. Industry average declined by 60.8% from previous year.
• In '2024', NWL's return on capital employed was 0.4%, indicating returns achieved on invested capital. The increase since '2023' reflects strengthening financial performance. Industry average for Plastic Products in '2024' stood at 44.9%. Industry average increased by 110.3% compared to previous year.
Overall, NWL's return on capital employed has been volatile but showed a downward trend over the past 4 years.

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

Good Range: Often 8%-20%.