what is a good percentage for return on capital employed 
the general rule about roce is the higher the ratio the better that s because it is a measure of profitability a roce of at least 20 is usually a good sign that the company is in a good financial position but keep in mind that you shouldn t compare the roce ratios of companies in different industries as with any financial metric it s best to do an apples to apples comparison the bottom linethere are a number of different financial metrics that help analysts and investors review the financial health and well being of different companies you can use a company s return on capital employed to determine how profitable it is and how efficiently it uses its capital you can easily calculate it using figures from corporate financial statements but be sure to compare the roce of companies within the same industry as those from different sectors tend to have varying ratios however it s generally a given that having a ratio of 20 or more means that a company is doing well 