Company analysis
What is roce?
How much profit a company makes on all the capital it uses, borrowed and owned.
Explained in more detail
ROCE stands for return on capital employed. Because it includes borrowed money, it is harder to flatter with debt than ROE is, which makes it a more honest measure of how good the underlying business actually is.
An example
For instanceA business earning 22% ROCE is using its total capital more productively than one earning 9%.
Why this matters to you
You will meet this word in broker apps, company results and market news. Knowing what it means is not the goal on its own. The goal is being able to judge whether a number is good or bad for the investment you are actually holding.
On AlphaVik, any time roce appears in a view or a lesson, you can hover or tap the word and this explanation comes with it. You never have to leave the page to look something up.