Return on Capital Employed (ROCE)

This refers to a measure of a business’s profitability.

ROCE is one of the most common measures of business profitability (sometimes known as the ‘primary ratio’); it is calculated by the profit before interest and tax divided by the difference between total assets and current liabilities. It is a ratio which can be used to compare performance over time or between different businesses or business opportunities.

ROCE Formula Equation

ROCE is a term normally found in economics and financial management; explore our learning resources to discover more. Explore our learning zone to discover more