The EBIT-EPS approach to capital structure is a tool businesses use to determine the best ratio of debt and equity that should be used to finance the business' assets and operations. At its core, the ...

Return on capital is a way to measure the profitability of a business. Simply put, it compares a company’s profits with the value of the assets used to produce them. It answers the question “How many ...

Return on capital employed (ROCE) is a popular financial metric that helps investors, analysts and managers assess the overall profitability of a business. This ratio shows how efficiently a company ...

ROCE includes both debt and equity, offering a comprehensive investment metric. ROCE is calculated as EBIT divided by (Total Assets - Current Liabilities). Comparing ROCE with industry peers helps ...

Interest expense, net income, and EBIT are three related financial metrics that all have to do with the profitability of a company. Here's what you need to know about calculating each one, and how ...