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Why is Return On Capital Employed (ROCE) Considered the Primary Measure of Profitability?

April 26, 2017Capital Employed measure primary profitability Return roce

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Why is Return On Capital Employed (ROCE) Considered the Primary Measure of Profitability?

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Some investors consider ROCE the primary measure of profitability since it compares the inputs (total capital invested into the company) with the outputs (profits generated by the company).