ROCE
2 July 2021
ROCE stands for Return on Capital Employed and is a measure of the return a company generates from the capital invested in the business. The measure basically compares earnings with the capital employed to provide an insight into how well a business has used its capital investments to generate income.
ROCE uses the reported (period end) capital numbers. A variation of this metric is Return on Average Capital Employed (ROACE) which uses the average of the opening and closing capital for the period.
ROCE = EBIT / Total capital employed
This indicator is included in the book: Key Performance Indicators – the 75+ measures every manager needs to know, which contains an in-depth description of this KPI, as well as practical advice on data collection, calculations, target setting, and actual usage.
Related Articles
Explainable AI: Challenges And Opportunities In Developing Transparent Machine Learning Models
One of the biggest problems with artificial intelligence (AI) is that it’s very difficult for us to understand how it works – it’s just too complicated![...]
Here’s What The Future Of The Internet Will Look Like
It's difficult to predict exactly what the future internet will look like because new technology is evolving so quickly — but there is no doubt that the newest iteration of the web will transform virtually every part of our economy and society.[...]
How Panini Is Using Web3 To Create Digital Markets And Collectibles
Globally, Panini is the biggest name in the sports trading card business – a household name in its own right, with partnerships in place with global brands, including FIFA, Disney, and NASCAR.[...]
5 Reasons Why You Should Care About Web3
Web3 has the potential to disrupt pretty much everything we know about life online and who controls it.[...]
Universal Studios, The Metaverse, And The Future of Theme Parks
Universal Studios theme parks are constantly evolving to keep up with changing technology — and one of the most exciting recent developments has been the integration of metaverse technologies into Universal’s attractions.[...]
From Diagnosis To Treatment: 10 Ways AI Is Transforming Healthcare
AI is poised to revolutionize how we approach and address global health challenges. Dive into this post to explore the top 10 ways AI is positively impacting the healthcare landscape.[...]
Stay up-to-date
- Get updates straight to your inbox
- Join my 1 million newsletter subscribers
- Never miss any new content
Social Media