If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. Analysts use this formula to calculate it for IPG ...

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Firstly, we'll ...

Ideally, a business will show two trends; firstly a growing return on capital employed (ROCE) and secondly, an increasing amount of capital employed. Basically this means that a company has profitable ...

Image source: Getty Images. Simply put, the return on capital employed (ROCE) measures how much profit results from capital employed—that is, how much money the business needs to operate.

The formula for this calculation on Jet2 is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.16 = UK£513m ÷ (UK£5.9b - UK£2.7b) (Based on ...