A printable cheatsheet with calculations
and notes

Instead of calculating each ratio individually

Let our ratio tool instantly calculate your ratios. Input your financial data once and get multiple results.

Return on capital employed (ROCE)


Net operating profit

(Total assets - Current liabilities)


The return on capital employed (ROCE) is a valuable measure of a company’s profitability, adjusted for the amount of capital used.

Business owners, managers, and especially investors consider this ratio when evaluating how much profit each dollar of capital employed generates.

Note: expanded calculation

Divide net operating profit or EBIT by the employed capital, which is total assets minus current liabilities


M&M had a net operating profit of $100,000. They reported $100,000 of total assets and $25,000 of current liabilities on their balance sheet for the year.

Return on capital employed = $100,000 / ($100,000 – $25,000) = 1.33 

A return of 1.33 means that for every dollar invested in employed capital, M&M earns $1.33


A “good” ROCE varies between industries, but, on average, it tends to be around 10%.

For investors, the higher the ROCE, the better, which means more profits are generated per dollar of capital employed.



ROT: Rule of thumb
HA: Historical Average (organization’s historical average)
PG: Peer Group average
EB: Economic Benchmark

DISCLAIMER: The interactive calculators on this site are self-help tools intended to help you visualize and explore your financial information. They are not intended to replace the advice of a qualified professional. Because each business is different, we can not guarantee accuracy.