Article taken from: finance.yahoo.com
Ignoring the stock price of a company, what are the underlying trends that tell us a business is past the growth phase? More often than not, we’ll see a declining return on capital employed (ROCE) and a declining amount of capital employed. […] What is Return On Capital Employed (ROCE)? For those that aren’t sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. […] And on the capital employed front, the business is utilizing roughly the same amount of capital as it was back then.
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