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Return on capital employed

In: A Guide to Business Performance Measurements

Author

Listed:
  • Edwin Whiting

Abstract

Return on capital employed (ROCE) is regarded by most businesses (excepting very small ones) as their key measure of total performance. It puts together profit and capital. More capital should give a capability to earn more profit. The ROCE ratio shows profitability: how profit produced stands up to the capital being used to generate it.

Suggested Citation

  • Edwin Whiting, 1986. "Return on capital employed," Palgrave Macmillan Books, in: A Guide to Business Performance Measurements, chapter 18, pages 214-231, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-07472-3_18
    DOI: 10.1007/978-1-349-07472-3_18
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    Cited by:

    1. Volkow, Artiom & Droždz, Jolanta, 2016. "Evaluating Impact of the Common Agricultural Policy 2004-2013 Direct Payment Scheme on Economic Sustainability of Agriculture in Lithuania," Problems of Agricultural Economics / Zagadnienia Ekonomiki Rolnej 253701, Institute of Agricultural and Food Economics - National Research Institute (IAFE-NRI).

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