What is return on capital employed?
It’s always important to consider what kind of return a company is generating from its assets. One way to do this is to look at return on capital employed (ROCE). Ed Bowsher explains what ROCE is, how to calculate it, and why it’s useful.
Its always important to consider what kind of return a company is generating from its assets.One way to do this is to look at return on equity (ROE) which weve explained in a previous video. But the problem with ROE is that it doesnt take a companys debt into account.
See also:
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
The most influential people of 2025Here are the most influential people of 2025, from New York's mayor-elect Zohran Mamdani to Japan’s Iron Lady Sanae Takaichi
-
Millions of parents are missing out on up to £720 a year in extra pension cash – are you affected?A mum who narrowly missed out on the pension boost said she “never knew the government rule existed” and wants other parents to use it
