English

# Profitability Indicator Ratios ROCE Calculator

Return on Capital Employed is a ratio expressed as a percentage which is a measure of how well a company is using equity and debts. It is expressed as the sum of a company's debt liabilities and equities to reflect a company's total capital employed. Given here is the online profitability indicator ratios ROCE calculator to do Return on Capital Employed calculation. This ROCE ratio calculator needs values of earnings before interest and tax and the capital employed for computations.

## Return on Capital Employed Calculation | ROCE Ratio Calculator

Return on Capital Employed is a ratio expressed as a percentage which is a measure of how well a company is using equity and debts. It is expressed as the sum of a company's debt liabilities and equities to reflect a company's total capital employed. Given here is the online profitability indicator ratios ROCE calculator to do Return on Capital Employed calculation. This ROCE ratio calculator needs values of earnings before interest and tax and the capital employed for computations.

#### Formula:

Return on Capital Employed = Earnings Before Interest and Tax / Capital Employed

### Example:

Calculate the return on capital employed by a company in which its earnings before interest and tax be Rs. 1000000 and the capital employed be Rs. 120000.

#### Solution:

Return on Capital Employed = 1000000 / 120000
= 8.3333