Return on Common Equity (ROCE)

Return on Common Equity (ROCE) is a financial metric that indicates the profitability of a company by measuring how much profit the company is generating on the funds invested by common shareholders. ROCE takes into account the company's net income and the book value of common equity. It helps investors assess how effectively a company is using shareholder funds to generate profits. The formula for calculating ROCE is:

ROCE = (Net Income - Preferred Dividends) / (Common Equity + Retained Earnings)

ROCE is expressed as a percentage and is often compared to the company's cost of capital to determine if the company is creating shareholder value.

Additional Details

Metric Name	Type	Default Period Type
roce	fin_metric	FY

Formatting Details

Data Format	Display Format	Unit
float	perc	percentage