Table:
|  | 2019 | 2018 |
| --- | --- | --- |
|  | £m | £m |
| Property, plant and equipment | 251.2 | 230.8 |
| Right-of-use assets (IFRS 16) | 40.8 | – |
| Prepayments | 0.9 | 6.2 |
| Inventories | 185.9 | 160.6 |
| Trade receivables | 240.7 | 245.1 |
| Other current assets | 35.3 | 32.9 |
| Tax recoverable | 8.4 | 4.6 |
| Trade, other payables and current provisions | (178.3) | (172.0) |
| Current tax payable | (26.7) | (23.7) |
| Capital employed | 558.2 | 484.5 |
| Average capital employed | 521.4 | 482.2 |
| Average capital employed (excluding IFRS 16) | 501.0 | 482.2 |
| Operating profit | 245.0 | 299.1 |
| Adjustments (see adjusted operating profit on page 160) | 37.7 | (34.2) |
| Adjusted operating profit | 282.7 | 264.9 |
| Adjusted operating profit (excluding IFRS 16) | 281.4 | 264.9 |
| Return on capital employed | 54.2% | 54.9% |
| Return on capital employed (excluding IFRS 16) | 56.2% | 54.9% |
Paragraphs:
2 Alternative performance measures continued
Return on capital employed (ROCE)
ROCE measures effective management of fixed assets and working capital relative to the profitability of the business. It is calculated as adjusted operating profit divided by average capital employed. More information on ROCE can be found in the Capital Employed and ROCE sections of the Financial Review on page 57.
An analysis of the components is as follows:
Question:
What does ROCE measure?
Answer: effective management of fixed assets and working capital relative to the profitability of the business