ROCE (Return on Capital Employed) Ratio Calculation
ROCE ratio calculator is a finance tool to calculate the ratio between net operating profit and total capital employed of a company. It is an investment valuation indicator for investors to evaluate how much cash profit is generated for each part of capital employed in a company. Generally, a higher return on capital employed ratio may indicate that the return on the investment is higher and the lower ROCE ratio may indicate that the lower return on capital employed.
Formula ROCE (Return on Capital Employed) = Net Operating Profit/Capital Employed