Application
ROCE is used to prove the value the business gains from its assets and liabilities. A business which owns lots of land will have a smaller ROCE compared to a business which owns little land but makes the same profit.
It basically can be used to show how much a business is gaining for its assets, or how much it is losing for its liabilities.
Read more about this topic: Return On Capital Employed
Famous quotes containing the word application:
“The application requisite to the duties of the office I hold [governor of Virginia] is so excessive, and the execution of them after all so imperfect, that I have determined to retire from it at the close of the present campaign.”
—Thomas Jefferson (1743–1826)
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—William Wordsworth (1770–1850)
“We will not be imposed upon by this vast application of forces. We believe that most things will have to be accomplished still by the application called Industry. We are rather pleased, after all, to consider the small private, but both constant and accumulated, force which stands behind every spade in the field. This it is that makes the valleys shine, and the deserts really bloom.”
—Henry David Thoreau (1817–1862)