Financial Terms Glossary

ROCE - Return On Capital Employed


Return On Capital Employed - a measure of the historic performance of a company's capital investments – not to be confused with the future measure, ROI. It is calculated by dividing the ongoing profitability of a business by it's net assets (assets minus liabilities).


Spouted and proffered by people who don't know a more precise definition for the financial measure they really want. Simply, it's the return from an investment against the cost of that investment - but that isn't really precise enough. What counts as return? What counts as cost? And what interest rates apply? Get specific...please.

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