What is ROCE (Return on Capital Employed)?
ROCE measures profit earned on all capital employed in the business, including both equity and long-term debt — widely used in Indian fundamental analysis.
Formula
ROCE = EBIT ÷ Capital Employed (Total Assets - Current Liabilities)
How to Interpret
ROCE above 20% is generally excellent. Particularly useful for comparing Indian companies across sectors.
Typical Ranges
Above 15% is good, above 25% is exceptional.
Find Stocks Using This Metric
Use the Equiscale Stock Screener to filter Indian stocks by ROCE.
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