Calculate the ROCE for Alexis Corporation for the year ended March 31, 2010. Solution Earnings before interest and taxes for 2010 is $47. The other figures are taken from page 108. For 2010, the ratio is: ROCE = 47 [ ( 563 + 200 ) + ( 534 + 300 ) ] / 2 100 % = 5.9 % This ratio tells much the same story as ROE: namely a poor performance in 2010, with the return on capital employed being less than the rate that the business has to pay for most of its borrowed funds (that is, 9% for the bonds)