Return on capital employed (ROCE) is the ratio of net operating profit of a company to its capital employed.
Return on capital employed or ROCE is a profitability ratio that measures how efficiently a company can generate profits from its capital employed by comparing net operating profit to capital employed.
Definition Return on capital employed (ROCE) is a measure of the returns that a business is achieving from the capital employed, usually expressed in percentage terms. Capital employed equals a company's Equity plus...
Return on Capital Employed (ROCE), a profitability ratio, measures how efficiently a company is using its capital to generate profits. The return on capital
Return on Total CapitalReturn on total capital is a profitability ratio that measures profit earned by a company using both its debt and equity capital. It is also known as return on invested capital (ROIC) or return on capital employed (ROCE).Return...
Return on Capital Employed (ROCE) Formula & Calculation Average Capital Employed Net Operating Profit After Taxes (NOPAT) ROCE Calculation Using Example Interpretation of ROCE Return on Capital Employed = NOPAT / Average Capital Employed Average Capital Employed ...
The return on capital employed is best suited when comparing the performance of the companies in the capital- intensive industries.The company’s return should be more than the rate at which the funds are borrowed from the investors. The formula to calculate this ratio is: ...
There are mainly five return ratios, return on assets, return on equity and return on capital employed, return on investment, and return on net worth. Return on Assets (ROA) It is the profitability ratio that is used to evaluate the company’s level of efficiency in employing its assets to...
ROCE (Return on Capital Employed) - The Strategic CFO®: "Leverage ROCE metrics to gauge your company's efficiency in using capital to generate profits."
Many companies may calculate the following key return ratios in their performance analysis: return on equity, return on assets, return on invested capital, and return on capital employed. Formula and Calculation of Return on Capital Employed (ROCE) ...