Return on Capital Employed (ROCE) - Definition, Formula
Return on Capital Employed (ROCE) - Definition, Formula
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Many people hear the term ROCE (Return on Capital Employed) and think it’s complicated, but the idea is simple: it measures how efficiently you use the money invested in your business. When you bring in additional funds—whether your own or borrowed—and use them wisely to increase your output, the returns grow faster than the capital itself. That’s the power of ROCE. Even if your core business earns a fixed percentage, smartly using extra capital can multiply your overall returns. It’s not just a
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