What does ROCE 1y Ago mean?
Return on Capital Employed (ROCE) compares earnings with capital invested in the company. It is similar to Return on Assets, but takes into account sources of financing. NOPAT is equal to EBIT * (1 - tax) -- the return on the capital employed should be measured in after tax terms. The main drawback of ROCE is that it measures return against the book value of assets so, as these are depreciated, the ROCE will increase even though cash flow is constant. This is not the case with ROIC.