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What do you mean by Return on Capital Employed? What does it indicate?
Return of Capital Employed (ROCE) is one of the ratios of overall profitability group, which measures the profitability of the capital employed in the business. A high ROCE is always preferred as it indicates that the long term funds of owners and creditors are utilized in a better and profitable manner.
Formula to calculate ROCE = (Net Profit + Interest on Long Term Loans) / Capital Employed
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