Tag: capital employed

Return on Capital Employed (ROCE) Explained: Comparing Two £400,000 Business Units to See Which One Actually Earns Its Keep

Two business units, each with £400,000 tied up in assets, can look equally matched until you calculate Return on Capital Employed. This guide walks through a worked ROCE comparison, shows how a van purchase temporarily drags down the ratio, and explains why tracking ROCE trends beats judging a single year's snapshot.