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Return on capital employed is an accounting ratio used in finance, valuation, and accounting. It is a useful measure for comparing the relative profitability of companies after taking into account the amount of capital used. [1]
A financial ratio or accounting ratio states the relative magnitude of two selected numerical values taken from an enterprise's financial statements. Often used in accounting , there are many standard ratios used to try to evaluate the overall financial condition of a corporation or other organization.
The accounting rate of return, also known as average rate of return, or ARR, is a financial ratio used in capital budgeting. [1] The ratio does not take into account the concept of time value of money. ARR calculates the return, generated from net income of the proposed capital investment. The ARR is a percentage return.
Calmar ratio; Capital adequacy ratio; Capital recovery factor; Capitalization rate; CASA ratio; Cash conversion cycle; Cash return on capital invested; Cash-flow return on investment; Cost accrual ratio; Current ratio; Cyclically adjusted price-to-earnings ratio
How to calculate the current ratio. ... an acceptable range for the current ratio could be 1.0 to 2. Ratios in this range indicate that the company has enough current assets to cover its debts ...
Return on capital (ROC), or return on invested capital (ROIC), is a ratio used in finance, valuation and accounting, as a measure of the profitability and value-creating potential of companies relative to the amount of capital invested by shareholders and other debtholders. [1] It indicates how effective a company is at turning capital into ...
Calculates and displays a ratio at N:1 {{Calculate ratio|5|3}} gives 1.7:1 {{Calculate ratio|5|3|2}} gives 1.67:1 Template parameters [Edit template data] This template prefers inline formatting of parameters. Parameter Description Type Status 1 1 Number being divided Example 5 Number required 2 2 Number being converted to 1 Example 3 Number required 3 3 Number of decimals Default 1 Example 2 ...
2. According to the European Accounting Association: Capital maintenance is a competing objective of financial reporting. [4] Financial accounting is the preparation of financial statements that can be consumed by the public and the relevant stakeholders. Financial information would be useful to users if such qualitative characteristics are ...