What is the difference between ROE(Return on Equity) and
ROCE(Return on Capital Employed)?
Answer Posted / tulja
Return On Equity-ROE
The amount of net income returned as a percentage of
shareholders equity. Return on equity measures a
corporation's profitability by revealing how much profit a
company generates with the money shareholders haveinvested.
Return on Equity = Net Income/Shareholder's Equity
Net income is for the full fiscal year (before dividends
paid to common stock holders but after dividends to
preferred stock.) Shareholder's equity does not include
preferred shares.
Also known as "return on net worth" (RONW).
Return On Capital Employed-ROCE
A ratio that indicates the efficiency and profitability of a
company's capital investments.
ROCE=EBIT/Total Assets-Current Liabilities
Is This Answer Correct ? | 17 Yes | 4 No |
Post New Answer View All Answers
What is the Full form of SWIFT and what are the features and benefits?
Give us one reason for why should we select you?
What is MFN? What is Gold Standard?
Where do you come from? What is the specialty of your home town?
Write in short the function of Finance Department.
Give Examples Of Bank Clerking Duties?
Explain the Types of Banks in India
what are all the things will consider while doing sensitivity analysis?
What do you mean by 'plan expenditure'?
How many alpha- numeric numbers are there in total in a PAN Card?
What do you know about Jan Dhan Yojna Scheme?
How Does The Single Supervisory Mechanism Operate?
What do you know about the formula of Simple interest and Compound Interest?
Define the terms- underwriting, sales, agent.
As an investment banker what you think an analyst does on a typical day?