Return on Capital Employed, Prior Trailing 12m

What is the definition of ROCE % PTTM?

Return on Capital Employed (ROCE) compares earnings with capital invested in the company. It is similar to Return on Assets, but takes into account sources of financing.

We calculate this as Operating Income (more or less EBIT) divided by Capital Employed which we define as Fixed Assets + Working Capital or, said another way, Total Assets minus Total Current Liabilities.


Stockopedia explains ROCE % PTTM...

Return on Capital Employed (ROCE) compares earnings with capital invested in the company. A high double digit often means that the company has a defensible edge versus its competitors (e.g. a strong brand or a unique product). However, because ROCE measures return against the book value of assets, it's worth being aware that depreciation can flatter ROCE even though cash flow is constant. This is not the case with ROIC.


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