π ROCE Calculator β Return on Capital Employed
Calculate Return on Capital Employed (ROCE) to measure profitability relative to total capital used.
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ROCE Formula
ROCE = EBIT / Capital Employed
Capital Employed = Total Assets β Current Liabilities
Capital Employed = Total Assets β Current Liabilities
A good ROCE should be higher than the company's borrowing rate. If you borrow at 6% and your ROCE is 4%, the debt is destroying value.
ROCEReturn on Capital EmployedCapital EfficiencyEBIT