Return on Capital Employed: Ratio for Profitability and Capital Efficiency

Updated 2/7/2024 One of Terry Smith’s investing foundations’ main pillars is investing in good companies, which he defines as companies with high returns on capital employed. For those unfamiliar with Smith, he runs Fundsmith, whose returns have almost doubled those of the S&P 500 over the last decade. Smith’s Fundsmith has investments that have averaged […]