From the deskFinancial ratios

Financial ratios explained

A ratio is only as comparable as the definitions under it. Net debt, EBITDA and invested capital are each computed in more than one way, and the choice moves the result. These articles give each ratio's formula, a worked example and the definition choices to check before two companies are set side by side.

Return on Capital Employed Explained: How One Company Ranks First and Last in the Same YearFinancial ratios
Return on Capital Employed Explained: How One Company Ranks First and Last in the Same Year
Worked example · 5 min
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Gearing Ratio Explained: Why BP Is 23% Geared, or 47%, Depending on One FootnoteFinancial ratios
Gearing Ratio Explained: Why BP Is 23% Geared, or 47%, Depending on One Footnote
Worked example · 5 min
Financial Leverage Ratio: Four Formulas, One Company, Four AnswersFinancial ratios
Financial Leverage Ratio: Four Formulas, One Company, Four Answers
Worked example · 7 min
Return on Capital Employed Explained: How One Company Ranks First and Last in the Same YearFinancial ratios

Return on Capital Employed Explained: How One Company Ranks First and Last in the Same Year

BP published the best 2025 ROCE of the four oil majors, 13.9%. On reported profit and one capital base it is 3.7%, the lowest. What changes, and why.

Worked example5 min readOct 26, 2026
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