Profitability
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 by both US and Indian fundamental analysts (and a particular favourite of UK and Indian value investors).
Formula
ROCE = EBIT ÷ Capital Employed (Total Assets - Current Liabilities)
How to Interpret
ROCE above 20% is generally excellent. Useful for comparing capital-intensive companies (industrials, utilities, manufacturing) across both US and international markets like India.
Typical Ranges
Above 15% is good, above 25% is exceptional.
Find Stocks Using This Metric
Use the Equiscale Stock Screener to filter US or Indian stocks by ROCE.