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Returns

ROCE

Operating income relative to capital employed (equity plus long-term debt), before tax.

Formula

Operating income (TTM) ÷ (equity + long-term debt)

Served as: ttm · derived. Annual and quarterly observations are never mixed unlabeled.

Where the inputs come from

  • OperatingIncomeLoss (TTM)
  • StockholdersEquity + LongTermDebtNoncurrent (latest reported)

Listed highest priority first. Every served figure carries its filing, fiscal period and accession; open any value on the financials page to see them.

How to compare it honestly

Compare within the same industry; pre-tax basis makes cross-jurisdiction reads cleaner than ROIC.

When it is not served

Not meaningful when capital employed is zero or negative; shown as missing.

Missing data is missing evidence: it is never shown as zero and never treated as a conclusion.

What it cannot tell you

Ignores tax entirely and uses book values for capital employed.

Questions worth asking next

  • How does the pre-tax read differ from the after-tax ROIC?
  • Has capital employed changed from debt issuance or equity movements?

Research prompts, not recommendations.

See it computed from filings

Related in returns: ROE · ROA · ROIC · ROE (DuPont) · Asset turnover · Equity multiplier · Tax burden · Interest burden

Definitions are descriptive and educational. Nothing here is a guaranteed signal or personalized investment advice. How the platform computes and cites every figure.

Educational content only. Not financial advice. TrendNalysis provides educational and informational financial analysis built from public SEC filings and economic data (FRED, BLS). It is not financial, investment, tax, or legal advice and is not a recommendation to buy or sell any security. Market pricing is not currently included. Past performance does not guarantee future results. Always do your own research and consult a licensed financial professional before investing.