HC Deb 07 November 1979 vol 973 c195W
Mr. Bruce-Gardyne

asked the Secretary of State for Industry what has been the rate of return on capital employed in Rolls-Royce (1971) in each year since nationalisation.

Mr. Michael Marshall

The rate of return on capital employed in Rolls-Royce Ltd. for the years 1976 to 1978, as defined by the NEB in its annual reports, was as follows:

per cent.
1976: -6.8
1977: 11.9
1978: 9.0
Figures for years prior to the transfer of the company's shareholding to the NEB can only be derived from Rolls-Royce's annual reports and are not strictly comparable with the basis used in the NEB reports. However, by using a definition of return on capital employed as the company's profits before interest and tax as a percentage of net assets employed, plus bank loans and overdrafts and short-term loans, the figures for the years 1971–1975 are as follows:
per cent.
1971 (23 Feb-31 Dec): 4.9
1972: 11.9
1973: 18.7
1974: 13.0
1975: 4.1

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