Why DCC's adjusted ROCE is double my calculation

Disclosure: Roland owns shares of DCC. This stock is also a member of Roland's quality dividend model portfolio.

DCC's November 2021 investor presentation presented a return on capital employed (ROCE) of 17.1% for the group.

My calculations suggest a statutory ROCE figure of just 8.4%. While most companies use some adjustments, I thought that the scale of the difference required closer examination.

It took me a little while to understand DCC's alternative approach to calculating ROCE, so I thought it might be worth an article exploring this topic.