Return on Capital Employed (ROCE), a profitability ratio, measures how efficiently a company is using its capital to generate profits. The return on capital Guide to what is Return on Capital Employed (ROCE). We explain its formula, differences with return on invested capital & return on equity. ROCE stands for Return on Capital Employed, which shows how efficiently an organisation generates profit and measures its profitability after factoring in the capital used to achieve that profitability. Return on Capital Employed (ROCE) is an important financial ratio that shows how profitable and efficient a company is with its money. It measures how well a company uses its capital. Like Return on Invested Capital (ROIC), ROCE looks at both debt and equity, giving a full picture of profitability. What is Return on Capital Employed (ROCE)?
