Ratio

This query is : Resolved

Report Abuse Follow Query Ask a Query

Roshan Modi

Roshan Modi (Querist)
Follow

31 December 2013 what is diffrence between ROI and ROCE
and what is the formula of capital employed

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

01 January 2014 Return On Capital Employed (ROCE) is a measure of how effectively the company is using its capital. The formula to measures the return on all the assets the company is using: Profit before interest and tax (PBIT) / (total assets - current liabilities)

Return On Investment (ROI) is a profitability measure that evaluates the performance of a business. ROI can be calculated in various ways. The most common method is Net Income (PAT) as a percentage of Net Book Value (total assets minus intangible assets and liabilities).