ROCE Calculator
Finance CalculatorsCalculate Return on Capital Employed for capital-intensive firms.
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ROCE
About This Tool
ROCE Calculator to measure a company's profitability and the efficiency with which its capital is employed. Better than ROE for companies with high debt.
Frequently Asked Questions
Capital Employed is the total amount of capital used for the acquisition of profits, typically calculated as Total Assets minus Current Liabilities.
ROCE is better for companies with high debt because it considers total capital (equity + debt), providing a clearer picture of overall operational efficiency.
A higher ROCE indicates a more efficient use of capital. Investors look for ROCE that is consistently higher than the company's borrowing rate.
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