Return On Capital Employed

Finance

Calculate Return on Capital Employed (ROCE). Formula: ROCE = EBIT / Capital Employed. Measures efficiency of capital utilization.

Formula

ROCE = (EBIT / Capital Employed) × 100

EBIT $500k, Capital $2M

Inputs
  • EBIT ($): 500000
  • Capital Employed ($): 2000000

ROCE = 25%

Frequently asked questions

What is ROCE?
Return on Capital Employed shows how efficiently a company uses capital. Higher ROCE indicates better capital efficiency.