What does ROCE mean?
Return on capital employed, or ROCE, shows how much operating profit a business earns on all the money it uses. That money is the shareholders' equity plus borrowed money.
Because it counts debt too, it compares companies funded in different ways on a more even footing than ROE.
How is it worked out?
Take EBIT: profit before interest and tax, after depreciation. Divide it by capital employed and multiply by 100.
Capital employed is usually net worth plus debt. Some companies take cash away from that total; each annual report says which version it uses.
Where do you find it in a filing?
Many annual reports print ROCE in a ratio table in the notes to the accounts. Saksoft's FY26 report, for example, shows it as EBIT divided by capital employed.[S1]
Companies also quote it in investor presentations, sometimes with a different definition. Check the footnote before comparing two figures.
What do the examples below show?
Cityfort's non-bank pages show net worth and net debt. Together they show how much capital a business uses, and how much of it is borrowed.