Return on Capital Employed Ratio (ROCE Ratio): The prime objective of making investments in any business is to obtain satisfactory return on capital invested. Hence, the return on capital employed is used as a measure of success of a business in realizing this objective.
Definition of Capital Employed
Definition of Capital Employed represents the capital investment necessary for a business to function. Consequently, it is not a measure of assets, but of capital investment in which stock or shares and long-term liabilities.