Which of the following best describes Return on Capital Employed (ROCE) ?

Question

Which of the following best describes  Return on Capital Employed (ROCE) ?

Answer

It indicates how effectively a company generates operating profit from all long-term capital

Answer

It measures the return to shareholders based on net income and equity

Answer

It assesses the efficiency of capital investment by comparing profit to total equity

Answer

It measures the proportion of profit retained in the business

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