Return on capital employed (ROCE)

We use the return on capital employed ratio (ROCE) as the central performance measure for the development of our Group portfolio as well as for allocating capital expenditures.

The target value for ROCE is ≥ 6.5%.

You can find the current development of ROCE in the 2020 Integrated Report.

Derivation of ROCE

ROCE 201220132014201520162017201820192020
 EBIT adjusted (€ million)2,7082,2362,1091,7591,9462,1522,1111,837– 2,903
 ÷ Capital Employed per Dec. 31 (€ million)

32,642

33,086

33,683

33,459

33.06635,09336,65742,99941,764
ROCE (%)8.36.86.35.35.96.15.84.3- 7.0

 

Derivation of Capital Employed

 € million201220132014201520162017201820192020
 

BASED ON ASSETS

         
Property, plant and equipment /intangible assets41,816

41,811

43,217

42,821

42.57543,20744,487

50,485

49,994
+ Inventories9899489591,0181,0621,1511,3691,5201,937
+ Receivables / other assets5,2105,257

5,477

5,408

5.7806,5457,2747,7238,249
-  Other liabilities7,9227,8168,7728,5149,0138,9399,6049,749-10,545
-  Other provisions-5,162-4,883-5,044-5,311-5,334-5,117-5,068-5,098-6,041
-  Deferred income-2,217-2,141-2,063-1,853-1,870-1,623-1,648-1,478-1,205
-  Receivables from financing-72-90

-91

-110

-134-131-174-404-625
Capital Employed32,64233,08633,68333,45933,06635,09336,09342,99941,764

We lead the DB Group and the single business units in matters concerning ROCE goals while anticipating the character and the risk of the operative business. The ROCE measures the performance of our business actvities. This orientates our planning including the investment program. The ROCE goals are set with their minimum being at hte level of the Weighted Average Cost of Capital or WACC.

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