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| Definition | : | Return on Capital Employed |
| Category | : | Business » Finance |
| Country/ Region |
: | Worldwide
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Acronym
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Return on Capital Employed (ROCE) is a profitability ratio that measures the efficiency with which a company utilizes its capital to generate profits. A higher ROCE indicates that a company is more efficient at generating profits from its capital.
ROCE is calculated by dividing a company's Earnings Before Interest and Taxes (EBIT) by its capital employed.
ROCE = EBIT / Capital Employed
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The full form of ROCE is Return on Capital Employed