Roce meaning: Return on capital employed

Return on capital employed (ROCE) is a financial ratio that measures how efficiently a company uses its capital. It shows the ability of the enterprise to generate returns on the total capital invested, which includes equity as well as debt but excludes short-term debt. ROCE (Return on Capital Employed) is a financial metric that measures a company's profitability and efficiency in using its capital. Learn how to calculate ROCE, why it is important, and what are its limitations and alternatives. If you are an investor wanting to assess a company's profitability, understanding Return on Capital Employed (ROCE) and Return on Equity (ROE) is key. ROCE evaluates how effectively a company uses all its capital to generate profits, while ROE shows the profit made solely for shareholders. ROCE measures a firm's profitability and capital efficiency, helping evaluate how effectively it generates returns from its capital employed