Return on Capital Employed (ROCE)

Evaluate how effectively a business generates operating profit from its total employed capital, a broad efficiency benchmark.

EBIT (Operating Profit)

Capital Employed

EBIT$0

Capital Employed$0

Performance-

Return on Capital Employed

0.00 %

Enter values to calculate ROCE

Industry Benchmarks (Good / Average / Poor)

Technology25%+ / 15-25% / <15%

Manufacturing20%+ / 12-20% / <12%

Retail18%+ / 10-18% / <10%

Healthcare22%+ / 14-22% / <14%

Financials15%+ / 10-15% / <10%

Utilities12%+ / 8-12% / <8%

Tips for Improving ROCE

ProfitabilityIncrease margins, reduce costs

Asset UsageOptimize inventory & asset turns

CapitalReduce excess cash & idle assets

Working CapImprove receivables collection

Understanding ROCE

ROCE = (EBIT ÷ Capital Employed) × 100. It measures how effectively a company uses its capital to generate profits. A higher percentage indicates better efficiency.

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