ROE & ROCE | Why these Ratios are Important?

The financial metrics return on equity (ROE), and the return on capital employed (ROCE) are valuable tools for gauging a company's operational efficiency and the resulting potential for future growth in value. They are often used together to produce a complete evaluation of financial performance.
ROE=Net Income ÷ Shareholders’ Equity
ROCE= EBIT ÷ Capital Employed
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