Return on capital employed

By | 2017-09-13T15:29:06+00:00 13th September 2017|

Return on capital employed (ROCE) assesses a company’s profitability and the efficiency with which its capital is deployed. The ROCE ratio is calculated as: Earnings Before Interest and Tax (EBIT) / Capital Employed and expressed as a percentage “Capital Employed” as shown in the denominator of this equation is the sum of shareholders’ equity and debt liabilities.