4.7 Metric 7: Return on Capital Employed(%)
The regulatory definition of this metric is:“ This metric compares the operating surplus to total assets less current liabilities and is a common measure in the commercial sector to assess the efficient investment of capital resources. The ROCE metric would support registered providers with a wide range of capital investment programmes”.
3.2 %
Metric 7- Return on Capital Employed(%)
3.0 %
2.8 % 2.6 %
2.4 %
Metric 7- Return on Capital Employed(%)
2.2 %
2 % 2015 2016 2017 2018
The information above highlights a steady and ongoing improvement in this metric over the four year trend period. 2016 saw the most significant increase. Performance has been relatively consistent from 2016-2018, but with an overall increase / improvement in the measurement being noted. Accord’ s performance is comparative to its peer group for this metric.
5 %
Metric 7- Return on Capital Employed(%)
4 % 3 % 2 % 1 %
Metric 7- Return on Capital Employed(%)
0 % |
Accord 2018 |
Accord 2017 |
RP1( 2017) |
RP2( 2017) |
RP3( 2017) |
RP4( 2017) |
RP5( 2017) |
RP6( 2017) |
RP7( 2017) |
RP8( 2017) |
RP9( 2017) |
Did Accord meet its VFM target / objectives?
Yes – The Return of Capital Employed metric is principally driven by the value of Accord’ s asset base and also operating surplus performance.
Accord achieved its 2017 / 18 aspirations regarding operating surpluses and development activity. Both of these measures drive the return on capital employment metric.
Future performance targets for this metric
As outlined in the commentary for metrics 1, 2 and 6 Accord is committing to adding to its asset base through the development of new homes and also to increasing operating surpluses / margins. Both of these factors make a positive contribution to the Return on Capital Employed metric – accordingly there is an expectation that further year-on-year improvements will be identified going forwards.
Financial Statements 2018 19