Overview
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.
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