Return on Capital Employed
Definition
ROCE. A measure of the returns that a company is realizing from its capital. Calculated as profit before interest and tax divided by the difference between total assets and current liabilities. The resulting ratio represents the efficiency with which capital is being utilized to generate revenue.
Use this term in a sentence
“ You should try to have the very best return on capital employed that you can have for your new company. ”
“ Zeke sought to increase the Return on Capital Employed as his business had invested a great deal of capital in the off-shore fishery off Maine. ”
“ It is important to a company and or business that they keep their return on capital employed, also known as ROCE ratio relatively low in order to maintain a profitable business. ”
