This return on capital employed Template is a useful tool to calculate the ROCE ratio. First it calculates the capital employed which is equal to total assets – total current liabilities. To obtain the Return on capital employed, it then divides Earnings before interest and tax (EBIT) by Capital Employed.

The ratio is a profitability metric that is used to measure how well the company is using its capital to generate profits. The ROCE is widely used by investors in their investment criteria, as it is considered one of the top profitability metrics.

Reviews Add a review
No reviews yet

More From Corporate Finance Institute®

Browse our top rated business templates. See All
Financial Institution Dividend Discount Model
The financial institution dividend discount model uses future dividends to find the implied share price. This model is based on…
Loan Payment Calculator
The loan payment calculator allows users to determine the principal and interest payment each month until the full balance of…
DDM - Excel Dividend Discount Model Template
The dividend discount model template allows investors to value a company base on future dividend payments. This is based on…
Non-directional trading strategy template Non-directional Trading Strategies Template
The non-directional trading strategies template allow users to determine the profit when buying options. This template focuses on non-directional strategies…
restructuring financial model template preview 1 Restructuring Financial Model Template
This restructuring financial model template is used to demonstrate the financial interactions behind the restructuring process. Adjust this model to…
TMT Financial Model Template Preview TMT Financial Model Template
This TMT financial model template is used to value technology, media, and telecom firms. This model provides a template to…