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.

You can find the current development of ROCE in the 2019 Integrated Report.

Derivation of ROCE

ROCE (€ million or %) 2012 2013 2014 2015 2016 2017 2018 2019 H1 2020
  EBIT adjusted 2,708 2,236 2,109 1,759 1,946 2,152 2,111 1,837 -1,780
Capital Employed per Dec. 31

32,642

33,086

33,683

33,459

33.066 35,093 36,657 42,999 41,840
ROCE 8.3 6.8 6.3 5.3 5.9 6.1 5.8 4,3 -8.5

 

Derivation of Capital Employed

 € million 2012 2013 2014 2015 2016 2017 2018 2019
 

BASED ON ASSETS

               
Property, plant and equipment /intangible assets 41,816

41,811

43,217

42,821

42.575 43,207 44,487

50,485

+ Inventories 989 948 959 1,018 1,062 1,151 1,369 1,520
+ Receivables / other assets 5,210 5,257

5,477

5,408

5.780 6,545 7,274 7,723
-  Other liabilities 7,922 7,816 8,772 8,514 9,013 8,939 9,604 9,749
-  Other provisions -5,162 -4,883 -5,044 -5,311 -5,334 -5,117 -5,068 -5,098
-  Deferred income -2,217 -2,141 -2,063 -1,853 -1,870 -1,623 -1,648 -1,478
-  Receivables from financing -72 -90

-91

-110

-134 -131 -174 -404
Capital Employed 32,642 33,086 33,683 33,459 33,066 35,093 36,093 42,999

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.