Return on capital employed and COFACE: Difference between pages

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__NOTOC__(ROCE).  
''France.''


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.
Compagnie Française pour l'Assurance pour Commerce Extérieur.  


This measure needs care in its definition and application, because both the 'profit' and the 'capital employed' inputs can be defined in different ways.
Also written 'Coface'.




For example, depending on the context, the 'profit' may be either before tax or after tax.
French based international credit insurer.  


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.
Following privatisation by the French government it is owned by the Natixis bank group.




===Simple before-tax ROCE based on operating profit and non-current liabilities===
In 2017, its role as the French state export credit agency was transferred to Bpifrance.
A simple before-tax measure of ROCE is:


ROCE = Operating profit / (equity + non-current liabilities)


==See also==
* [[Bpifrance]]
* [[Export Credits Guarantee Department]]
* [[Exports]]


In this simple context:
[[Category:Trade_finance]]
 
'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 on assets]]
* [[Return on equity]]
* [[Return on investment]]
 
[[Category:Corporate_finance]]

Latest revision as of 15:12, 27 September 2023

France.

Compagnie Française pour l'Assurance pour Commerce Extérieur.

Also written 'Coface'.


French based international credit insurer.

Following privatisation by the French government it is owned by the Natixis bank group.


In 2017, its role as the French state export credit agency was transferred to Bpifrance.


See also