The measurement of return on capital employed in assessment of company’s condition
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 impo...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Malopolska School of Economics in Tarnow, Poland
2020-06-01
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| Series: | Zeszyty Naukowe Małopolskiej Wyższej Szkoły Ekonomicznej w Tarnowie |
| Subjects: | |
| Online Access: | https://zn.mwse.edu.pl/index.php/zn/article/view/719 |
| _version_ | 1818647172428595200 |
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| author | Sławomir Lisek Lidia Luty Monika Zioło |
| author_facet | Sławomir Lisek Lidia Luty Monika Zioło |
| author_sort | Sławomir Lisek |
| collection | DOAJ |
| description | 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. |
| first_indexed | 2024-12-17T00:58:18Z |
| format | Article |
| id | doaj.art-b416a41508534121819c9d918114d8b4 |
| institution | Directory Open Access Journal |
| issn | 1506-2635 2658-1817 |
| language | English |
| last_indexed | 2024-12-17T00:58:18Z |
| publishDate | 2020-06-01 |
| publisher | Malopolska School of Economics in Tarnow, Poland |
| record_format | Article |
| series | Zeszyty Naukowe Małopolskiej Wyższej Szkoły Ekonomicznej w Tarnowie |
| spelling | doaj.art-b416a41508534121819c9d918114d8b42022-12-21T22:09:33ZengMalopolska School of Economics in Tarnow, PolandZeszyty Naukowe Małopolskiej Wyższej Szkoły Ekonomicznej w Tarnowie1506-26352658-18172020-06-01462556710.25944/znmwse.2020.02.5567719The measurement of return on capital employed in assessment of company’s conditionSławomir Lisek0Lidia Luty1Monika Zioło2University of Agriculture in Krakow, PolandUniversity of Agriculture in Krakow, PolandUniversity of Agriculture in Krakow, PolandThe 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.https://zn.mwse.edu.pl/index.php/zn/article/view/719return on capital employedfinancial analysisenterprisesynthetic indicator |
| spellingShingle | Sławomir Lisek Lidia Luty Monika Zioło The measurement of return on capital employed in assessment of company’s condition Zeszyty Naukowe Małopolskiej Wyższej Szkoły Ekonomicznej w Tarnowie return on capital employed financial analysis enterprise synthetic indicator |
| title | The measurement of return on capital employed in assessment of company’s condition |
| title_full | The measurement of return on capital employed in assessment of company’s condition |
| title_fullStr | The measurement of return on capital employed in assessment of company’s condition |
| title_full_unstemmed | The measurement of return on capital employed in assessment of company’s condition |
| title_short | The measurement of return on capital employed in assessment of company’s condition |
| title_sort | measurement of return on capital employed in assessment of company s condition |
| topic | return on capital employed financial analysis enterprise synthetic indicator |
| url | https://zn.mwse.edu.pl/index.php/zn/article/view/719 |
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