return on capital employed

(Dictionary)

Author:
Harold Averkamp, CPA, MBA

Definition

A measurement of financial performance of a company’s operating division that is not responsible for its financing and income taxes. The calculation is likely to be 1) the division’s operating income before interest and income taxes divided by 2) the division’s assets employed.

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For the past 52 years, Harold Averkamp (CPA, MBA) has
worked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. He is the sole author of all the materials on AccountingCoach.com.

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return on capital employed

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