Return on capital employed

Return on capital employed is an accounting ratio used in finance, valuation, and accounting. It is a useful measure for comparing the relative profitability of companies after taking into account the amount of capital used. Return on capital employed is an accounting ratio used in finance, valuation, and accounting. It is a useful measure for comparing the relative profitability of companies after taking into account the amount of capital used. ROCE = Earning Before Interest and Tax (EBIT) Capital Employed {displaystyle {mbox{ROCE}}={frac {mbox{Earning Before Interest and Tax (EBIT)}}{mbox{Capital Employed}}}}