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ADVFN HomeHelpFinancialsDeeper AnalysisOPERATING RATIOS - Profitability RatiosReturn on Capital Employed (ROCE)
OPERATING RATIOS - Profitability Ratios
  Return on Capital Employed (ROCE)
  Return on Assets (ROA)
  Net Profit Margin
  Assets Turnover
  Return on Investment (ROI)
  Dividend Payout Ratio
  Plowback Ratio
  Growth from Plowback
  Net Income of Revenues

Return on Capital Employed (ROCE)

Return on Capital Employed (ROCE) ratio, measures the profitability of a company by the pre-tax profit achieved on a company's capital employed. The capital employed is taken to be the net operating assets (i.e. fixed assets plus net working capital).

Return on Capital Employed is calculated as follows and expressed as a percentage:

= [pre-tax profit / average (total assets - creditors short)] * 100