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
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—René Descartes (1596–1650)
“Preaching is the expression of the moral sentiment in application to the duties of life.”
—Ralph Waldo Emerson (1803–1882)
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—Samuel Johnson (1709–1784)