ROCE
Return on Capital Employed
Profitability RatiosA measure of how efficiently a company uses its total capital (equity + debt) to generate profits. Better for comparing capital-intensive businesses.
Formula
ROCE = EBIT / (Total Assets - Current Liabilities)
Why it matters
ROCE above cost of capital creates value. Unlike ROE, it considers debt. Essential for infrastructure, manufacturing, and telecom.
Indian example
Related terms
Learn the concept
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