ROCE – Return on Capital Employed

By Rohit Malik

October 28, 2021


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.

About the author

Rohit Malik

A yogi who like Finance and Technology. I have been in Indian Stock market for over 12 years now as financial analyst, portfolio manager, trader. Now, I focus on Yoga, Financial Education & Long term investing. 

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}