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', X's return on capital employed was 33.4%, indicating returns achieved on invested capital. Industry average for Steel/Iron Ore in '2021' stood at 14.6%.
• In '2022', X's return on capital employed was 22.1%, indicating returns achieved on invested capital. The decline from '2021' may indicate some operational or financial challenges. Industry average for Steel/Iron Ore in '2022' stood at 15.6%. Industry average increased by 1.0% compared to previous year.
• In '2023', X's return on capital employed was 6.8%, indicating returns achieved on invested capital. The decline from '2022' may indicate some operational or financial challenges. Industry average for Steel/Iron Ore in '2023' stood at 11.7%. Industry average declined by 3.9% from previous year.
• In '2024', X's return on capital employed was 2.7%, indicating returns achieved on invested capital. The decline from '2023' may indicate some operational or financial challenges. Industry average for Steel/Iron Ore in '2024' stood at 4.1%. Industry average declined by 7.5% from previous year.
Overall, X'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%.