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', U's return on capital employed was -12.6%, indicating returns achieved on invested capital. Industry average for Computer Software: Prepackaged Software in '2021' stood at 5.8%.
• In '2022', U's return on capital employed was -12.8%, indicating returns achieved on invested capital. The decline from '2021' may indicate some operational or financial challenges. Industry average for Computer Software: Prepackaged Software in '2022' stood at -29.4%. Industry average declined by 35.2% from previous year.
• In '2023', U's return on capital employed was -12.2%, indicating returns achieved on invested capital. The increase since '2022' reflects strengthening financial performance. Industry average for Computer Software: Prepackaged Software in '2023' stood at -24.3%. Industry average increased by 5.1% compared to previous year.
• In '2024', U's return on capital employed was -11.0%, indicating returns achieved on invested capital. The increase since '2023' reflects strengthening financial performance. Industry average for Computer Software: Prepackaged Software in '2024' stood at -25.2%. Industry average declined by 0.9% from previous year.
Overall, U'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%.