Question: What does the expert below say about UPS (United Parcel Services)? Did you know there are some financial metrics that can provide clues of a potential multi-bagger? One common approach is to try and find a company with returns on capital employed (ROCE) that are increasing, in conjunction with a growing amount of capital employed. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. With that in mind, the ROCE of United Parcel Service (NYSE:UPS) looks decent, right now, so lets see what the trend of returns can tell us. Return On Capital Employed (ROCE): What Is It? For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. Analysts use this formula to calculate it for United Parcel Service: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.18 = US$10.0b ÷ (US$70b - US$16b) (Based on the trailing twelve months to September 2023). So, United Parcel Service has an ROCE of 18%. On its own, that's a standard return, however it's much better