What Is Return On Capital Employed (ROCE)? – Part 1

Today, we explain what is the Return on Capital Employed (ROCE). Also, what it tells and shows you. This is Part 1 of 2 of this Topic.

In this series, you’ll learn my entire process from the beginning – and how I find companies to research further – to the end – and valuations and evaluations.

Get FREE access to 17 of our best training videos from the past by clicking here.

In the video here you can see how I find stocks to research like this.

A couple of weeks ago I showed you my analysis and thoughts on French company Dassault Systemes (DASTY). And told you why even though it had massive margins I wouldn’t invest in it now.

Then, I showed you my analysis and thoughts on the Japanese company Fanuc Corp (FANUY). Why I won’t be investing in it, and I also share a tip on how to potentially spot problems with companies whose margins fall a lot in a short period of time.

Today, let’s take a couple of steps back though and answer the question.

Let’s get to it

What Is Return On Capital Employed (ROCE)

In the 6- the minute video above, I showed you the following things:

  • The meaning of ROCE
  • What It Shows You
  • What This Tells You
  • And more…

If you have any questions or comments about anything in the video above or this ongoing series, let me know.

Here are the resources related to this topic:

Get Your 5 Free Gifts Including The Value Investing Journey Valuation And Profitability Metric Template Seen In The Video. Click Here.

I’m going to teach as much as possible in this series and in these videos, so the more questions and comments we have, the more you’ll learn, so please put any comments and questions in the comments section below this post.

Seriously, and I say this to all my coaching and training clients as well.

Tired of wasting time learning how to find, evaluate, and value stocks all by yourself?  If you're ready to learn more today check out our Value Investing Masterclass by clicking here.

Even if it’s a minor question, you think may be stupid, ask it.

If you’re investing real-world money, a ‘stupid question’ can cost you real money and frustration, so don’t hesitate to ask.

If you want to learn from our other case study videos for free click here.

P.S. If you want to learn more about ROIC and how to value and evaluate stocks fast make sure to check out our Value Investing Masterclass and Value Investing Coaching Program by clicking the links in this sentence.

What we do

We help you become a better value investor faster with our free content and resources and paid programs and courses.

Schedule Your Free Call Here!