return on capital employed

return on capital employed
( ROCE)
Indicator of profitability of the firm's capital investments . Determined by dividing Earnings Before Interest and Taxes by (capital employed plus short-term loans minus intangible assets). The idea is that this ratio should at least be greater than the cost of borrowing. Bloomberg Financial Dictionary
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An accounting ratio designed to assess the underlying profitability of a company. It is defined as profits before interest and tax divided by capital employed, expressed as a percentage. Broadly speaking, the higher the return on capital employed, the more successful the company. Dresdner Kleinwort Wasserstein financial glossary

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   ► See ROA, ROCE.

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return on capital employed UK US noun [C or U] (ABBREVIATION ROCE)
FINANCE, ACCOUNTING a company's profit for a particular period compared with the amount of capital invested in it. This shows how effectively the company is using the amount of capital invested in it to make a profit: »

The company's return on capital employed has declined steadily in the last three years.


Financial and business terms. 2012.

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Look at other dictionaries:

  • Return on capital employed — (ROCE) is used in finance as a measure of the returns that a company is realising from its capital employed. It is commonly used as a measure for comparing the performance between businesses and for assessing whether a business generates enough… …   Wikipedia

  • return on capital employed — (ROCE) Measures the operating profit of a company as a percentage of capital employed and so gives a measure of overall efficiency in using available resources to generate profit. Practical Law Dictionary. Glossary of UK, US and international… …   Law dictionary

  • Return on Capital Employed — Der Return on Capital Employed (ROCE) ist eine betriebswirtschaftliche Kennzahl die misst, wie effektiv und profitabel ein Unternehmen mit seinem eingesetzten Kapital umgeht und stellt quasi eine Weiterentwicklung der Gesamtkapitalrentabilität… …   Deutsch Wikipedia

  • Return on capital employed — Le ROCE (Return On Capital Employed) est utilisée dans le domaine de la finance pour mesurer le retour qu une compagnie réalise en fonction des capitaux investis. Il est habituellement utilisé pour comparer la performance entre business et pour… …   Wikipédia en Français

  • Return On Capital Employed - ROCE — A ratio that indicates the efficiency and profitability of a company s capital investments. Calculated as: ROCE should always be higher than the rate at which the company borrows, otherwise any increase in borrowing will reduce shareholders… …   Investment dictionary

  • return on capital employed — ROCE An accounting ratio expressing the profit of an organization for a financial period as a percentage of the capital employed. It is probably one of the most frequently used ratios for assessing the performance of organizations. In making the… …   Accounting dictionary

  • return on capital employed — ROCE An accounting ratio expressing the profit of an organization for an accounting period as a percentage of the capital employed. It is one of the most frequently used ratios for assessing the performance of organizations. In making the… …   Big dictionary of business and management

  • return on capital employed — /rɪ tɜ:n ɒn kæpɪt(ə)l ɪm plɔɪd/, return on assets /rɪˌtɜ:n ɒn æsets/, return on equity /rɪˌtɜ:n ɒn ekwɪti/ noun a profit shown as a percentage of the capital or money invested in a business. Abbreviation ROCE, ROA, ROE …   Dictionary of banking and finance

  • Capital employed — has many definitions and is not easily analysed. In general, it represents the capital investment necessary for a business to function. Consequently, it is not a measure of assets, but of capital investment: stock or shares and long term… …   Wikipedia

  • Return on capital — Return on invested capital (ROIC) is a financial measure that quantifies how well a company generates cash flow relative to the capital it has invested in its business. It is defined as Net operating profit less adjusted taxes divided by Invested …   Wikipedia

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