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Fundamental Analysis

ROCE

Definition

Return on Capital Employed - measures how efficiently a company uses its capital.

Understanding ROCE

ROCE is an important concept in stock market trading. Understanding this term will help you make better trading decisions and communicate effectively with other traders and financial professionals.

Key Points

  • Basic Definition: Return on Capital Employed - measures how efficiently a company uses its capital.
  • Category: This term is commonly used in Fundamental Analysis
  • Relevance: Essential knowledge for traders operating in Indian stock markets

Practical Example

When trading on NSE or BSE, you'll encounter roce regularly. For example, understanding this concept helps you analyze market conditions, make informed decisions, and manage your trading positions effectively.

Related Concepts

To fully understand roce, you should also be familiar with related trading concepts. Check out the related terms in the sidebar for a comprehensive understanding of this topic.

Related Terms

  • Market CapitalizationThe total market value of a company's outstanding shares (share price × shares outstanding).
  • P/E RatioPrice-to-Earnings ratio - stock price divided by earnings per share.
  • P/B RatioPrice-to-Book ratio - stock price divided by book value per share.
  • EPSEarnings Per Share - company's profit divided by outstanding shares.
  • ROEReturn on Equity - net income divided by shareholder equity, measuring profitability.
  • Debt to Equity RatioTotal debt divided by shareholder equity, measuring financial leverage.

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