MarketLearn
Chapter 22Advanced~19 min total

Return on Capital Employed (ROCE)

How well all the capital is put to work

ROCE measures operating profit against all the long-term capital a business uses — both equity and debt — making it a fairer lens across different financing choices.

Lessons

  1. 1Capital efficiencyAdvancedEBIT divided by equity plus debt.~10 min
  2. 2Why capital employed mattersAdvancedJudging how well a business turns capital into operating profit.~9 min
Course positionChapter 22 of 35