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"<p>Generally, a higher ROCE value is better. A good rule of thumb is to aim for a ROCE of at least 15% to 20%. However, this <a href=\"https://swoopfunding.com/ca/business-glossary/benchmark/\">benchmark</a> can vary by industry. For example, in the manufacturing sector, ROCE can exceed 25%, while in retail, it typically ranges from 5% to 15%.</p><p>A business should aim to generate a ROCE that consistently exceeds its weighted average cost of capital (WACC). This means the company is making a higher return on the money spent funding the business than the average cost of that funding (from both debt and equity).</p><p>A higher ROCE indicates a company is in a strong financial position and is generating significant profit. To assess whether your company has a good ROCE, compare it to other companies in the same industry. The company with the highest ROCE is generally the most profitable.</p><p>You can also compare ROCE to returns from previous years. If the ratios are trending downward, it indicates declining profitability. Conversely, an increasing ROCE suggests improving profitability.</p>"
<https://swoopfunding.com/ca/business-loan-calculator/return-on-capital-employed-calculator/>