Return on capital employed and Sidejacking: Difference between pages

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imported>Doug Williamson
(Add link.)
 
imported>Doug Williamson
(Create page. Source: The Treasurer, December 2018 / January 2019, p31.)
 
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__NOTOC__(ROCE).  
''Cybersecurity - cyber attacks.''


An accounting measure of management performance, calculated as the accounting profits divided by the total book value of the capital employed to earn the profits.
Sidejacking is a form of cyber attack in which an attacker steals a session cookie from a legitimate website visited by a legitimate client.


This measure needs care in its definition and application, because both the 'profit' and the 'capital employed' inputs can be defined in different ways.
These cookies often contain usernames and passwords, and are generally sent back unencrypted, even if the original log-in was protected via https.


The session cookie is then used to gain unauthorised access to systems.


For example, depending on the context, the 'profit' may be either before tax or after tax.


Similarly, whilst 'capital employed' will always include an appropriate measure for debt, the measure of debt which is considered appropriate may differ, according to the context.
==See also==
*[[CEO fraud]]
*[[Cyber attack]]
*[[Cybercrime – A Threat And An Opportunity]]
*[[Cyber security: protecting your business and your clients]]
*[[Cybersecurity]]
*[[DDoS]]
*[[Hotspot sniffing]]
*[[Man in the middle]]
*[[National Cyber Security Centre]]
*[[Social engineering]]


 
[[Category:Identify_and_assess_risks]]
===Simple before-tax ROCE based on operating profit and non-current liabilities===
[[Category:Technology]]
A simple before-tax measure of ROCE is:
 
ROCE = Operating profit / (equity + non-current liabilities)
 
 
In this simple context:
 
'Operating profit' is the before-tax profit measure, often the same as profit before interest and tax (PBIT); and
 
'Non-current liabilities' are the relevant measure of debt.
 
 
===Refining the measure of capital employed===
In other contexts, the measure of debt may be defined as net debt, in other words taking account both of shorter-term debt and of the netting off of most cash and cash-equivalent surpluses.
 
 
===After-tax ROCE for EVA calculations===
When ROCE is used in the calculation of economic value added (EVA), its inputs are defined as:
 
Return = PBIT x (1 - Tax rate)
 
Capital Employed = Book value of Equity + Book value of Debt.
 
 
== See also ==
* [[Accounting rate of return]]
* [[Book value]]
* [[Capital employed]]
* [[Debt]]
* [[Economic value added]]
* [[Equity]]
* [[Non-current liabilities]]
* [[Profit before interest and tax]] (PBIT)
* [[Profitability]]
* [[Return]]
* [[Return on assets]]
* [[Return on equity]]
* [[Return on investment]]
 
[[Category:Corporate_finance]]

Revision as of 21:56, 3 February 2019

Cybersecurity - cyber attacks.

Sidejacking is a form of cyber attack in which an attacker steals a session cookie from a legitimate website visited by a legitimate client.

These cookies often contain usernames and passwords, and are generally sent back unencrypted, even if the original log-in was protected via https.

The session cookie is then used to gain unauthorised access to systems.


See also