Capital work in progress
AccountingAlso called: CWIP
Capital spending incurred on assets not yet ready for use.
In plain terms
Money spent that earns nothing yet, sitting in assets and dragging return ratios down.
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Glossary
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
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Return on capital employed
AccountingAlso called: ROCE
Operating profit divided by the capital invested in the business.
In plain terms
Recalculate it including capital work in progress. If most of the return disappears, the distortion was doing the work.