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. ROCE is a financial statistic that may be used to analyze the profitability and capital efficiency of a firm. Know how to calculate return on capital employed and its examples, importance and limitations on Groww. Return on Capital Employed ( ROCE ) is an important financial ratio that shows how profitable and efficient a company is with its money. It measures how well a company uses its capital. Like Return on Invested Capital (ROIC), ROCE looks at both debt and equity, giving a full picture of profitability. What is Return on Capital Employed ( ROCE )? Investors use return on capital employed as a measure of a company's financial performance. Learn how ROCE is used alongside other financial metrics.
