ROCE definition

ROCE means Return On Capital Employed. This is a financial ratio defined as Segment EBIT (without exclusion of gains or losses from sale of assets, impairments or other charges) divided by the average Net Capital Employed for the same period. Net Capital Employed is the sum of shareholders’ equity and net interest bearing debt.

ROCE with respect to a given year means the ROCE achieved by PNC for the given covered period of that year and may be a positive or negative return, as the case may be. “ROCE” for this purpose means the publicly-reported return on average common shareholders’ equity of PNC for the given covered period of the year, as adjusted, on an after-tax basis, for the impact, as applicable to ROCE, of the items set forth in the definition “Earnings, EPS and ROCE Adjustments” as specified in Section 15.21, expressed as a percentage rounded to the nearest one-hundredth, with 0.005% being rounded upward to 0.01%.

ROCE is equal to the sum of (i) income from continuing operations, before charges and credits, and (ii) the after-tax impact of net interest expense, divided by the sum of (x) the average quarterly equity, including noncontrolling interests, and (y) the average quarterly net debt.

Examples of ROCE in a sentence

• Return on Capital Employed (ROCE) 20192018ChangeReturn on Capital Employed10.9%13.2%-230bps ROCE decreased in 2019 by 230 basis points to 10.9%.

• Consequently, the ROCE was not calculated and the net margin is reported for a few services which had interest payments on formal overdrafts or loans.

• ROCE is defined as underlying operating profit from continuing operations including the annualisation of acquisitions as a percentage of net assets excluding net debt, deferred consideration related to discontinued operations and legacy defined benefit pension asset/(liability).

• This decrease resulted from the combination of lower profitability in the year and increased average capital employed as a result of recent acquisitions and investments in JVs. Acquisitionsremain a key part of the growth strategy for the Group and it is the Group’s goal to maintain a ROCE range of between 10% and 13% over the medium-term.

• Improving Profitability Ratios: Despite GAIL's overall strong performance, there are areas for improvement, particularly in profitability ratios like return on equity (ROE) and return on capital employed (ROCE).

More Definitions of ROCE

ROCE means return on capital employed, which represents EBIT (Earnings before Interest and Tax) during the relevant year/period as a percentage of capital employed. Capital employed is the total of all types of capital, other equity, total borrowings, total lease liabilities and deferred tax liabilities (net) less deferred tax assets (net) as of the end of the relevant year/period.

ROCE for this purpose means the publicly-reported return on average common shareholders’ equity of PNC for the given covered period of the year, as adjusted, on an after-tax basis, for the impact, as applicable to ROCE, of the items set forth in the definition “Earnings, EPS and ROCE Adjustments” as specified in Section 15.21, expressed as a percentage rounded to the nearest one-hundredth, with 0.005% being rounded upward to 0.01%.

ROCE means Adjusted EBIT divided by Capital Employed.

ROCE. ’ means Operating Profit before Interest and Tax (Op EBIT) as a proportion of Total Capital Employed.

ROCE means Rerturn on Capital Employed, or (i) income from operations (defined as earnings before interest and tax with adjustment for extraordinary items within the discretion of the Board) divided by (ii) capital employed (based on the average of the beginning and ending balances of each calendar year, or a portion of a calendar year). Capital employed equals total assets less accounts payable, income taxes payable, accrued liabilities, and other current liabilities.

ROCE and “ROCE performance” have the meanings set forth in Section 3.3(c).

ROCE and “ROCE hurdle.” “ROCE” (return on average common shareholders’ equity) and “ROCE hurdle” have the meanings set forth in Section 6.3(b).