return on capital employed. ROCE, or return on investment (ROI), is the profit before interest and tax divided by average capital employed. It indicates the profit-generating capacity of capital employed.

The ratio of net earnings before interest expenses and after taxes over average capital employed. It reflects the net return on funds invested by shareholders and those loaned by banks and financial institutions.

Return on Capital Employed is a measure of the returns a company realises from its capital. Calculated as: Profit (before interest and tax) divided by the difference between assets and liabilities. Learn more

Return On Capital Employed. ROCE is a measure of how productively a company manages its refining, marketing and transportation assets. ROCE is the ratio of operating profits generated to the amount of operating capital invested.

Return on Capital Employed. See Accounting Rate of Return.

Return On Capital Employed. We define ROCE as the ratio of EBIT to operating assets as of the balance sheet date.

Return on Capital Employed. the ratio of accounting profit to capital employed. The measure of capital employed can be either Historic Cost Accounting (HCA) or Current Cost Accounting (CCA).

Return on Capital Employed. NOPAT (= EBIT minus taxes) in relation to Capital Employed (= shareholdersâ€(tm) equity plus interest-bearing debt minus cash-like items)

Return On Capital Employed. Annual trading profit expressed as a percentage of average capital employed over the year.

Return on Capital Employed. A ratio of income from continuing operations, adjusted for after-tax interest expense and minority interest, to the yearly average of total debt, minority interest and stockholders’ equity.

Return on capital employed. A key financial ratio that measures profit before interest and tax as a return on capital employed (i.e.  debt and equity).  ROCE can be decomposed into two constituent ratios - asset turnover (measuring the marketing efficiency with which sales revenue is generated from the asset base) and the net profit margin (measuring the operating cost efficiency with which profits are earned from sales revenue).

Return on capital employed. Percentage earnings on capital invested in the business by the shareholders. This measure is used to estimate the return the company has achieved on the assets it uses. The calculation uses average capital employed over a period (usually the financial year), attributable to funds provided by the shareholders. Average capital employed excludes interest bearing borrowings and cash deposits. ROCE = Profit before interest and taxes Average capital employed

Return on capital employed. EBIT ÷(shareholders funds + debt).... more on ROCE

Return on capital employed. ROCE is a key statistic reflecting the rate of return that the company’s management has obtained, on the shareholders' behalf, by their management of the company’s assets.

Abbreviation for Return on Capital Employed. This yield on capital is calculated in the Linde Group as the ratio of earnings before taxes on income, after adding back the interest expense and the interest costs for pension provisions, to the average amount of capital employed. In the business segments and divisions, ROCE is the ratio of EBITA, after adding back the interest costs for pension provisions, to the average amount of capital employed.

Return on Capital Employed. Return on Capital Employed (ROCE) determines the return on the capital utilised within a company. For the calculation of this parameter, the result after tax and the interest expenses less tax effects are compared with the average booked capital employed.

Return on capital employed. Operating result (EBIT) relative to average capital employed.

Return on capital employed. Also known as return on total assets, it is the profit before interest and tax divided by average total capital employed (total borrowings plus net worth or total assets). Average capital employed is the sum of capital employed at the beginning of the year and at the end of the year divided by two. The ratio indicates how efficiently the funds are utilised irrespective of the mode of financing. Also known as return on total assets.