Another key difference between ROIC and ROCE is thatROCE is based on pre-tax figures while ROIC is based on after-tax figures. Thus, ROCE is more relevant from the company’s perspective, while ROIC is more relevant from the investor’s perspective because it gives them an indication of wha...
ROIC vs. ROCE: What is the Difference? The return on invested capital (ROIC) and return on capital employed (ROCE) are returns-based metrics used to analyze the profitability of a company and the efficiency at which its management team allocates capital. Return on Invested Capital (ROIC) ...
Issue #1: Inconsistent Definitions and Calculations– See all the issues above with Cash and Lease Liabilities. Many companies also have their “own versions,” such as Return on Capital Employed (ROCE), Return on Capital (ROC), and others. ...