ROCE Calculator

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