Indicator of profitability of the firm's capital investments. Determined by dividing Earnings Before Interest and Taxes by (capital employed plus short-term loans minus intangible assets). The idea is that this ratio should at least be greater than the cost of borrowing.
Barry Goldsmith
| APA | Barry Goldsmith. (2010). Return on capital employed (ROCE). Retrieved September 27, 2026, from http://smartdefine.org/return_on_capital_employed_(roce)/definitions/1162474 |
| Chicago | Barry Goldsmith. 2010. "Return on capital employed (ROCE)" http://smartdefine.org/return_on_capital_employed_(roce)/definitions/1162474 (accessed September 27, 2026). |
| Harvard | Barry Goldsmith 2010, Return on capital employed (ROCE), Smart Define, viewed 27 September, 2026, <http://smartdefine.org/return_on_capital_employed_(roce)/definitions/1162474>. |
| MLA | Barry Goldsmith. "Return on capital employed (ROCE)" 21 October 2010. Web. 27 September 2026. <http://smartdefine.org/return_on_capital_employed_(roce)/definitions/1162474> |