ROCE: Return on Capital Employed Formula and Example
ROCE tells you how much operating profit a business makes for every pound tied up in it. The formula looks simple, but on one ordinary UK printing company it gives anything from 16% to 37% depending on how you calculate it. Here is the formula, a full worked example, what a good ROCE looks like and the owner-managed company quirks that make the textbook number flatter.
Read the guide