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What’s the difference between ROCE and ROIC?

The general rule is that a good ROCE value is higher than the company’s weighted average cost of capital (WACC). If a company’s ROCE is below the weighted average cost of its capital, this means that it’s wasting capital. 

• Roce is often confused with ROIC or Return on invested capital
• No matter how small or large the business, monitoring ROCE regularly can help make data-backed decisions, attract funding, and ensure long-term growth. 

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