Abbreviation for Return on Capital Employed. ROCE is the ratio of operating profit (earnings before interest and tax) to capital employed, expressed as a percentage. Capital employed equals shareholders' funds plus long-term liabilities, in other words all the long-term funds used by the company. The ratio measures the return on all sources of finance used by the company (i.e. equity plus debt) and is very similar to return on assets (which includes current liabilities). Also known as ROI or Return on Investment.

See also: ROA