TickerKhojROCE (return on capital employed)
ROCE is operating profit (before interest and tax) divided by capital employed — the owners' money plus long-term borrowings. It shows how well the business earns on all the money it uses, whoever provided it.
- Because it includes borrowed money, ROCE is less flattered by debt than ROE.
- A company whose ROCE is below its cost of borrowing is earning less on the money than the money costs.
- It is most useful for manufacturing and other capital-heavy businesses; for banks, ROE and asset quality matter more.
- Compare ROCE within the same industry and over several years.
Where to see it on TickerKhoj
Stock pages show ROCE among the key figures, and comparison pages compare it for two companies.
P/E ratio (price to earnings) · EPS (earnings per share) · ROE (return on equity) · Promoter pledge · Bulk deals and block deals