ROCE (Return on Capital Employed)
Return on Capital Employed (ROCE) is a key metric used to measure the financial performance of businesses in the procurement sector. It calculates the amount of profit generated as a percentage of the amount of capital employed by a business in its operations. This ratio helps businesses identify how efficiently they are using their available capital and gives insight into areas where improvement might be needed. By understanding this metric, businesses can gain valuable insights into their bottom line and make better decisions when it comes to the acquisition of new products or services.
