Six things every investor should know about return on capital employed (ROCE)

Return on capital employed is a key ratio that can reveal lots of useful information about a firm. In this short guide, Tim Bennett explains how it works, when it is most useful and when it can let you down.

By Tim Bennett

published 25 April 2013

in Features

Return on capital employed (ROCE) is a key ratio that can reveal lots of useful information about a firm. In this short guide, Tim Bennett explains how it works, when it is most useful and when it can let you down.

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Tim graduated with a history degree from Cambridge University in 1989 and, after a year of travelling, joined the financial services firm Ernst and Young in 1990, qualifying as a chartered accountant in 1994.

He then moved into financial markets training, designing and running a variety of courses at graduate level and beyond for a range of organisations including the Securities and Investment Institute and UBS. He joined MoneyWeek in 2007.