Roce meaning: Return on Capital Employed (ROCE) is a

Return on Capital Employed (ROCE) is a key financial ratio that shows how efficiently a company uses its capital. Learn its meaning, calculation & formula, pros, usage, and limitations. ROCE stands for Return on Capital Employed, which shows how efficiently an organisation generates profit and measures its profitability after factoring in the capital used to achieve that profitability. If you are an investor wanting to assess a company's profitability, understanding Return on Capital Employed (ROCE) and Return on Equity (ROE) is key. ROCE evaluates how effectively a company uses all its capital to generate profits, while ROE shows the profit made solely for shareholders. Return on capital employed (ROCE) is a financial ratio that measures a company's profitability and the efficiency that its capital is employed with.