Return on Capital Employed

[see page 10, Represents] operating profit as a percentage of the long term funds invested in the business.

\(\mathrm{ROCE} = \frac{\mathrm{Operating Profit}}{\mathrm{Equity Funds} + \mathrm{Non Current Liabilities}}\)

This measure shows the effectiveness of the company in employing long term funds.

Note: ROCE can [see page 19, also] be calculated as Operating Profit Margin \(\times\) Net Asset Turnover.