The Return On Average Capital Employed (R.O.A.C.E.) is an indicator whose value in percentage terms express the overall average return of capital employed in the company's activity (fixed investments and working capital).

EBIT / [(FIXED INVESTMENTS - WORKING CAPITAL "N-1") + (FIXED INVESTMENTS - WORKING CAPITAL "N")] /2

It is an additional means to reveal the degree of efficiency in the use of capital employed in the company by the management in order to generate income. It is also useful in comparability analysis and in transfer pricing analysis. 

Studio Lupini srl
Via Don Rosmini, 4
21052 Busto Arsizio (VA) IT
MAIL: info@studiolupini.it
VAT:  IT 03611190129
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