ROCE is a measure of the returns a company makes from its Capital Employed. It indicates the efficiency of a company's capital investments and is useful to compare performance between businesses.
ROCE = EBIT/ (Working Capital + Intangible Assets + Fixed Assets)
with Working Capital= Accounts Receivables + Inventories - Accounts Payable
with Working Capital= Accounts Receivables + Inventories - Accounts Payable
ROCE is a good indicator of profitability, as such, it should always be higher than the cost of borrowing.
| Any questions? |  | support@infrontanalytics.com |  | Europe: + 33 1 42 77 02 18 - USA: + 1 718 228 6126 |  | Close |