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', T's return on capital employed was 8.1%, indicating returns achieved on invested capital. Industry average for Telecommunications Equipment in '2021' stood at -34.5%.
• In '2022', T's return on capital employed was 0.9%, indicating returns achieved on invested capital. The decline from '2021' may indicate some operational or financial challenges. Industry average for Telecommunications Equipment in '2022' stood at -19.1%. Industry average increased by 15.3% compared to previous year.
• In '2023', T's return on capital employed was 7.5%, indicating returns achieved on invested capital. The increase since '2022' reflects strengthening financial performance. Industry average for Telecommunications Equipment in '2023' stood at -12.1%. Industry average increased by 7.1% compared to previous year.
• In '2024', T's return on capital employed was 6.7%, indicating returns achieved on invested capital. The decline from '2023' may indicate some operational or financial challenges. Industry average for Telecommunications Equipment in '2024' stood at -18.7%. Industry average declined by 6.7% from previous year.
Overall, T'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%.