ROCE Tree, Benchmarking and Levers to Deploy
Return on Capital Employed (ROCE) is a critical metric for assessing a company’s capital efficiency. It’s calculated by multiplying EBIT by Capital Turnover. High ROCE indicates efficient use of capital, while low ROCE suggests room for improvement. Benchmarking ROCE against industry peers is a potent tool for shaping cost-cutting strategies. By focusing cost-cutting initiatives toward […]