How it works
ROCE = EBIT / (total assets − current liabilities) × 100, using the selected balance-sheet date.
Input definitions
- Earnings before interest and tax
- Enter the value in the labeled unit.
- Total assets
- Enter the value in the labeled unit.
- Current liabilities
- Enter the value in the labeled unit.
A worked example
- Earnings before interest and tax
- 30000
- Total assets
- 300000
- Current liabilities
- 100000
Assumptions & limits
Uses the accounting classifications, periods and policies you enter. Illustrative management-accounting model; it is not an audited statement, filing or determination of local accounting or tax compliance.
Sources & review
Maintained by AnsRio. Methods and examples use automated checks; this does not imply independent professional certification.
Method updated 2026-10-18. Content checked against the stated method and examples. Our verification approach.
Common questions
Is capital employed defined the same way everywhere?
No. Analysts may use averages or equity plus noncurrent debt. This tool explicitly uses total assets less current liabilities.
How does Return on capital employed work?
ROCE = EBIT / (total assets − current liabilities) × 100, using the selected balance-sheet date.
What should I check before using Return on capital employed?
Uses the accounting classifications, periods and policies you enter. Illustrative management-accounting model; it is not an audited statement, filing or determination of local accounting or tax compliance.