8
Analysis of the enterprise
- Return on capital employed (ROCE)
- The components of ROCE
- Where do we go from here?
- Expense ratios
- Capital ratios
- Summary
We are now ready to start looking in depth at Wingate’s financial performance, starting with the enterprise.
What I’m going to do first is show you how we calculate the return that the enterprise is providing and see how it has changed over the last five years. We will then ask ourselves why this has happened. This will lead us on to a variety of other analyses, which will provide greater insight into Wingate’s true financial performance.
Return on capital employed
When we rearranged our balance sheet to distinguish between the enterprise and the funding structure, we ended up with one side of ...
Get Accounts Demystified, 7th Edition now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
