pre_text: A.2.6 Calculation of return on capital employed For purposes of calculating ROCE in interim periods, income before interest after tax is annualized. Average capital employed is determined using the average of the respective balances as of the quarterly reporting dates for the periods under review. [1] Item Other interest expenses / income, net primarily consists of interest relating to corporate debt, and related hedging activities, as well as interest income on corporate assets.
table: (in millions of €) 2019 2018
table: Net income 5,648 6,120
table: Less: Other interest expenses / income, net 1 (529) (482)
table: Plus: SFS Other interest expenses / income 763 721
table: Plus: Net interest expenses related to provisions for pensions and similar
table: obligations 148 164
table: Less: Interest adjustments
table: (discontinued operations) – –
table: Less: Taxes on interest adjustments
table: (tax rate (flat) 30%) (115) (121)
table: (I) Income before interest after tax 5,916 6,401
table: (II) Average capital employed 53,459 50,715
table: (I) / (II) ROCE 11.1 % 12.6 %
question: Analyse this data from a financial earnings document. What is the increase / (decrease) in Average capital employed from 2018 to 2019?