Return on Capital Employed (ROCE) 

Return on Capital Employed (ROCE) is a profitability ratio that evaluates how efficiently a company uses all available capital (both debt and equity) to generate operating profits. It provides a broader measure of financial performance than Return on Equity (ROE), as it accounts for both debt and equity capital. 

Formula: 

ROCE (%) = (Earnings Before Interest and Tax (EBIT) / Capital Employed) × 100    

Capital Employed typically refers to total assets minus current liabilities or total equity plus debt. A high ROCE indicates effective capital use and financial strength, making it a favored metric for comparing companies in capital-intensive industries.