Jun 10, 2025 · It's a ratio: earnings before interest and tax (a.k.a. operating income) per capital employed. The higher the ratio, the greater the profits generated from capital. ROCE includes debt …

Mar 14, 2024 · The return on capital employed (ROCE) metric answers the question of, “How much in profits does the company generate for each dollar in capital employed?” Given a ROCE of 10%, the …

Formula for Return on Capital Employed The formula for computing ROCE is as follows: Where: Earnings before interest and tax (EBIT) is the company’s profit, including all expenses except interest …

In other words, return on capital employed shows investors how many dollars in profits each dollar of capital employed generates. ROCE is a long-term profitability ratio because it shows how effectively …

Nov 28, 2025 · To calculate Return on Capital Employed, take the company’s EBIT (or operating profit) and divide it by capital employed, which represents the total funds used to run the business.

Aug 13, 2025 · Return on Capital Employed (ROCE) stands as one of the most crucial financial metrics for evaluating a company’s operational efficiency and profitability. This comprehensive guide will …

Nov 5, 2025 · Its general formula is: ROCE = Operating Profit (EBIT) ÷ Capital Employed. Each component requires careful definition to ensure accuracy and comparability across companies or …

ROCE is calculated by dividing a company's earnings before interest and taxes (EBIT) by its total capital employed, and is usually expressed as a percentage. The formula for calculating ROCE is as …

This is an in-depth guide on how to calculate Return on Capital Employed (ROCE) ratio with detailed analysis, interpretation, and example. You will learn how to use its formula to assess a firm's …

In this calculator, we will explain what return on capital employed (ROCE) is and discuss its importance, explain how to calculate the return on capital employed (two approaches for the ROCE formula), and …