Return on Capital Employed (ROCE)
Return on Capital Employed (ROCE) is a profitability ratio that helps determine the profit that a company earns for the capital it employs. ROCE is measured by expressing Net Operating Profit after Taxes (NOPAT) as a percentage of the total long term capital employed. In other words, ROCE can be defined as a rate of return earned by the business as a whole. Like ROE (equity), calculates % return of equity shareholders, ROCE calculates % return of all the capital providers together. If a business is financed completely by equity, ROE and ROCE will be same.