ROCE - Return on Capital Employed
Return on Capital Employed (ROCE) or just Return on Equity (ROE), is a financial ratio that is frequently use to evaluate the performance of an entity's management in utilising the resources of the entity to generate profits.
The formulas used are the following:
where Net Assets = Assets - Liabilities = Value of Equity
where Capital Employed = Net Assets + Net Debt = Equity + Net Debt, where Net Debt comprises of both current and non-current interest bearing debt.