
Return On Capital Employed - ROCE
外汇网2021-06-19 13:54:24
157
A ratio that indicates the efficiency and profitability of a company's capital investments.Calculated as:
|||ROCE should always be higher than the rate at which the company borrows, otherwise any increase in borrowing will reduce shareholders' earnings.A variation of this ratio is return on average capital employed (ROACE), which takes the average of opening and closing capital employed for the time period.

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