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NGReturn on capital employed calculator
To calculate the Return on capital employed (ROCE), you’ll need two pieces of information: the operating profit and the capital employed.
Page written by AI. Reviewed internally on March 18, 2024.
To calculate the Return on capital employed (ROCE), you’ll need two pieces of information: the operating profit and the capital employed.
Page written by AI. Reviewed internally on March 18, 2024.
ROCE stands for return on capital employed. It is a financial ratio that measures the profitability and efficiency of a company’s capital investments. ROCE indicates how well a company is generating profits from its invested capital.
ROCE is used as a performance metric by investors, analysts, and managers to assess a company’s profitability and the efficiency with which it utilises its capital. A higher ROCE indicates that the company is generating more profits relative to the capital invested, which is generally considered favourable.
It’s important to note that ROCE can vary across industries, so it is often more meaningful to compare a company’s ROCE to its industry peers to get a better understanding of its performance.
This calculator is intended for illustration purposes only and exact payment terms should be agreed with a lender before taking out a loan.
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