Return on capital employed (ROCE)

 

 

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Return on capital employed (ROCE)

 

Glossary of business

 

Definition of return on capital employed (roce)

 

Return on capital employed (ROCE) is a ratio that measures the performance of the firm in relation to the capital that has been invested. It is calculated by dividing the net profit before tax and interest by the level of capital employed and then multiplying by 100 to get the figure as a percentage. The higher the ROCE, the better the return the firm is making on the capital invested in the business.

 

Source : http://business-tes.wikispaces.com/file/view/Glossary.doc

link: http://business-tes.wikispaces.com/

Author : not indicated on the source document of the above text

 

Terminology about business

 

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Definition and meaning of return on capital employed (roce)

 

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