Return on capital employed (ROCE) is a financial ratio that can be used to assess how well companies are generating profits from their invested money.
In other words, ROCE tells us if the company in question has high efficiency with what they have and uses it or not for something more valuable–like returning some sort of profit back into society instead of just sitting there doing nothing at all!
This isn’t always true though because many factors go into determining ROCE including things like debt level as well as equity stakes so take care when comparing one industry’s performance against another.
When compared across different sectors, ROCE will show you how well each type in industry performs when it comes down to their ability to generate profit from every rupee invested through capital expenditures or equity investments- which makes this important measure ideal for assessing utility companies and telecoms who rely heavily upon borrowing money.