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ROCE(Return on Capital Employed)_A Ratio analysis ROCE is an important Financial Ratio that is used for measuring the combined effect of Profitability of the Business and the Productivity of the Business.  Profitability is measured in terms of  Return on Sales and Productivity is measured in terms of how well the Assets of the Business are put to use by looking at Assets Turnover. (1)The formula used for calculating Return on sales is PBIT less Tax/Net Sales. (2)The formula for calculating Return on Assets is Net Sales/(Net Fixed Assets+Net Current Assets) (3) the formula for calculating Return on Capital Employed(ROCE) is obtained by Multiplying (1)X(2)-(calculated for each year separately in the example given below) The following is a real example of a trend of ROCE of a Business over the years ,that has three Verticals: Belts, Oilseals and Engineering.The composite business is called Polymer. Now for this Business ,an analysis is done and the ways of how to improve the ROCE...

 RBI's recent Monetary Policy announcement after MPC considered the latest economic factors, CPI etc , came out with no repo rate cut. Primarily because CPI is elevated and at an uncomfortable level as far as RBI is concerned.since the mandated and stated objective of RBI is now inflation control, RBI has decided to hold the rate this time despite the economic slowdown calling for a steep rate cut.RBI also mentioned that this year would see real GDP contraction after more than four decades, but still decided to save the powder for a more rainy day or for a day when the bang will be worth its buck. India is facing rising prices also esp. food prices, fuel prices and therefore is experiencing a cost push inflation. There is a school of economists who say the inflation is fueled by easy liquidity floating in the economy and the stock exchange boom , gold price rise all indicate to easy money into areas where some quick money can be made.Even RBI is predicting a rise in inflation level...