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', R's return on capital employed was 8.5%, indicating returns achieved on invested capital. Industry average for Rental/Leasing Companies in '2021' stood at -2.9%.
• In '2022', R's return on capital employed was 13.0%, indicating returns achieved on invested capital. The increase since '2021' reflects strengthening financial performance. Industry average for Rental/Leasing Companies in '2022' stood at 3.1%. Industry average increased by 6.0% compared to previous year.
• In '2023', R's return on capital employed was 7.5%, indicating returns achieved on invested capital. The decline from '2022' may indicate some operational or financial challenges. Industry average for Rental/Leasing Companies in '2023' stood at -14.2%. Industry average declined by 17.4% from previous year.
• In '2024', R's return on capital employed was 7.8%, indicating returns achieved on invested capital. The increase since '2023' reflects strengthening financial performance. Industry average for Rental/Leasing Companies in '2024' stood at -120.8%. Industry average declined by 106.5% from previous year.
Overall, R'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%.