ROCE Calculator is used to calculate the Return on Capital Employed (ROCE) ratio of a company
- Capital Employed:
- What does ROCE mean?
- Return on capital employed or ROCE is a financial ratio used to measure a firm’s profitability and efficiency with which its capital is employed. It is the main indicator of any company that represents how efficiently a company running its business based on the investment and spending.
- ROCE = Earnings before Interest and Tax (EBIT) / Capital Employed
- A company has a net operating profit of $100,000. There are reported $100,000 of total assets and $25,000 of current liabilities, for the year.
According to the formula, Return on capital employed will be:-
- 1.33 = $100,000 / ($100,000 - $25,000)
- The company has a return of 1.33
- May 22, 2018
- Tool Launched