what is return on average capital employed roace 
the return on average capital employed roace is a financial ratio that shows profitability versus the investments a company has made in itself this metric differs from the related return on capital employed roce calculation in that it takes the averages of the opening and closing capital for a period of time as opposed to only the capital figure at the end of the period the formula for roace is roace ebit average total assets l where ebit earnings before interest and taxes l average current liabilities begin aligned text roace frac text ebit text average total assets text l textbf where text ebit text earnings before interest and taxes text l text average current liabilities end aligned roace average total assets lebit where ebit earnings before interest and taxesl average current liabilities 