Definitions 
Return on Capital Employed (ROCE) is used in finance as a measure of the returns that a company is getting from its employed capital.
It is commonly used as a measure for comparing the performance between businesses and for assessing whether a business generates enough returns to pay for its cost of capital.
Example: Calculating ROCE
Let us consider an example. A specific REIT owns just one property which it bought for £2 million, has debt of £1 million and made a pretax profit of £200,000. This company would have a ROCE of 200,000 / 2,000,000 = 0.1 or 10%. It’s important to note that ROCE is generally calculated on the basis of book value of assets.
