Return on Capital Employed

Written by Jerry Ratzlaff on . Posted in Manufacturing Engineering

Return on capital employed, abbreviated as ROCE, is how efficient a company is at using its capital to generate profits and use its capital efficiently.

 

Return on Capital Employed Formula

\(\large{ ROCE = \frac{ EBIT }{ CE }  }\)  

Where:

\(\large{ ROCE }\) = return on capital employed

\(\large{ CE }\) = capital employed

\(\large{ EBIT }\) = earnings before interest and taxes

 

Tags: Equations for Manufacturing