Roce meaning: Investors use return on capital employed

Investors use return on capital employed as a measure of a company's financial performance. Learn how ROCE is used alongside other financial metrics. ROCE measures a firm's profitability and capital efficiency, helping evaluate how effectively it generates returns from its capital employed What is Return on Capital Employed (ROCE)? Return on capital employed stands as a pivotal financial ratio, serving to gauge a company's profitability and the effectiveness with which it utilizes its capital resources. The calculation involves dividing net operating profit, or earnings before interest and taxes, by the total capital employed, which encompasses both equity and debt. By offering a snapshot of a company's financial performance, ROCE proves to be a valuable metric for assessing ... Return on capital employed (ROCE) is a financial ratio that measures how efficiently a company uses its capital. It shows the ability of the enterprise to generate returns on the total capital invested, which includes equity as well as debt but excludes short-term debt.