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', W's return on capital employed was -4.2%, indicating returns achieved on invested capital. Industry average for Catalog/Specialty Distribution in '2021' stood at -4.2%.
• In '2022', W's return on capital employed was -85.7%, indicating returns achieved on invested capital. The decline from '2021' may indicate some operational or financial challenges. Industry average for Catalog/Specialty Distribution in '2022' stood at -40.2%. Industry average declined by 36.0% from previous year.
• In '2023', W's return on capital employed was -55.1%, indicating returns achieved on invested capital. The increase since '2022' reflects strengthening financial performance. Industry average for Catalog/Specialty Distribution in '2023' stood at -8.6%. Industry average increased by 31.5% compared to previous year.
• In '2024', W's return on capital employed was -41.6%, indicating returns achieved on invested capital. The increase since '2023' reflects strengthening financial performance. Industry average for Catalog/Specialty Distribution in '2024' stood at -15.4%. Industry average declined by 6.8% from previous year.
Overall, W'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%.