The measurement of return on capital employed in assessment of company’s condition

Zeszyty Naukowe Małopolskiej Wyższej Szkoły Ekonomicznej w Tarnowie

Sławomir Lisek¹  Monika Zioło¹  Lidia Luty¹ 

[1] University of Agriculture in Krakow, Poland;

关键词: return on capital employed;    financial analysis;    enterprise;    synthetic indicator;   

DOI  :  10.25944/znmwse.2020.02.5567

来源: DOAJ

【 摘 要 】

The return on capital employed, as a financial ratio, is an important element of the assessment of the company’s condition. It shows the benefits gained by company shareholders against the invested capital. It constitutes the basic reason for investing in a particular enterprise. Thus, it is an important diagnostic variable in the construction of a synthetic indicator of the company’s financial standing. The aim of this article is to propose a universal, useful indicator of the profitability of capital which is fully relevant to the formulation of company condition assessment indicators. It is assumed that it should meet the following requirements: firstly, it should reflect the reality, rather than falsify it; and, secondly, it should refer to the return on the entire capital employed. The study has been conducted using the substantive analytical procedure as well as the empirical analysis based on ten companies listed on Warsaw Stock Exchange.

【 授权许可】

Unknown