ROCE Carrefour

FINACIAL MANAGEMENT EXPOSÉ

Now we will calculate Carrefour’s ROCE for the last two years. But first, the Return on Capital Employed is a financial ratio that can be used to assess a company’s profitability and capital efficiency. The ROCE percentage can be particularly useful for comparing the performance of capital-intensive enterprises.

The ROCE is calculated by:

Earnings Before Interest and Taxes or EBIT

(/)

Average Capital Employed

=

Return on Capital Employed

In more detail, these are:

ROCE = BAII N / ((Employee Capital N-1 + Employee Capital N) / count)

For 2021, we have:

ROCE = BAII 2021 / ((Employee Capital 2020 + Employee Capital 2021) / 2)

• BAII also known as EBIT includes all expenses except interest and income taxes. That’s the difference between operating revenues and operating expenses. The 2021 EBIT is 1927.

• Capital employed 2020 is calculated as Total Assets - Total Current Liabilities. We have 47,588 - 21,342 = 26 246

• Capital employed 2021 is calculated by also Total Assets - Total Current Liabilities, which gives us 47668 – 22150 = 25 518.

Finally, we have,

ROCE =        1927        / ((26246        +        25518)        / 2)

ROCE =        1927        /        25882

ROCE =        7,45 %

Pour 2020,

ROCE = BAII 2022 / ( (Capital Employé 2021 + Capital employé 2022) / 2 )

ROCE = 1556 / ( ((47668 - 22150) + (52755 - 24417)) / 2 )

ROCE = 1556 / ( ( 25518 + 28338 ) / 2 )

ROCE = 1556 / 26928

ROCE = 5,78 %

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