Rytvae Consulting · Think Right · Invest Right
ROCE Calculator
Result
Chart
Show formula & working
ROCE = EBIT ÷ Capital employed
EBIT = PBT + Finance costs · Capital employed = Total assets − Current liabilities
Details
How this works
ROCE measures how well a business uses all its long-term funds — owners' and lenders' — before financing choices.
A ROCE above the cost of borrowing means borrowing adds to owners' returns.
Frequently asked questions
Why EBIT and not PAT?
Capital employed includes lenders' money, so the return is measured before interest and tax.
Average or closing?
Average is better when the business grew during the year; enter opening figures to use it.
Want your ratios read the way a lender reads them?
Classification, quasi-equity and one-off items all move the ratios. Talk to Rytvae before you approach lenders.