Roce meaning: Return on Capital Employed (ROCE)

Return on Capital Employed (ROCE) is an important financial ratio that shows how profitable and efficient a company is with its money. It measures how well a company uses its capital. Like Return on Invested Capital (ROIC), ROCE looks at both debt and equity, giving a full picture of profitability. What is Return on Capital Employed (ROCE)? Return on Capital Employed (ROCE), a profitability ratio, measures how efficiently a company is using its capital to generate profits. The return on capital ROCE (Return on Capital Employed) is a financial metric that measures a company's profitability and efficiency in using its capital. Learn how to calculate ROCE, why it is important, and what are its limitations and alternatives. Guide to what is Return on Capital Employed (ROCE). We explain its formula, differences with return on invested capital & return on equity.