ROIC vs ROCE in Simple Terms – Why It Matters

Both ROIC (Return on Invested Capital) and ROCE (Return on Capital Employed) are formulas trying to describe how efficiently a company invests its capital. The difference between ROIC vs ROCE is subtle but powerful—basically, one (ROCE) is a shortcut of the other (ROIC). Before diving deeper, here’s the simple cliff notes: ROCE = EBIT / […]