RETURN ON CAPITAL EMPLOYED Definition

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RETURN ON CAPITAL EMPLOYED (ROCE) is a measure of how effectively the company is using its capital. The formula to measures the return on all the assets the company is using: Profit before interest and tax (PBIT) / (total assets - current liabilities)

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STRANDED PLANT is a cost that has been incurred, but can not be reversed. Usually referred to as a sunk cost.

DISCOUNT PAPER is securities that are issued at a discount and mature at face, or par value. The difference, rather than coupon payments, represents the interest earned at maturity .

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