It’s important to understand the advantages and disadvantages of ROCE in order to determine when and how to best use it. Advantages of ROCE The key benefit of ROCE is that it provides a comparison of profitability relative to both equity and debt. S...
Advantages and Disadvantages of ROCE Advantages ROCE provides a comprehensive measure of a company's overall performance by considering both profitability and capital efficiency. It helps assess the effectiveness ofcapital allocationdecisions and the ability to generate returns on invested capital. ...