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Meaning of return on capital employed (roce)

 

 

 

Return on capital employed (ROCE)

 

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Business glossary

 

Meaning of term return on capital employed (roce) :

 

Return on capital employed (ROCE) is a ratio that measures the performance of the firm in relation to the capital that has been invested. It is calculated by dividing the net profit before tax and interest by the level of capital employed and then multiplying by 100 to get the figure as a percentage. The higher the ROCE, the better the return the firm is making on the capital invested in the business.

 

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Source : http://business-tes.wikispaces.com/file/view/Glossary.doc

 

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