ROE vs ROCE Explained (and How to Get Them via API)

Return on equity (ROE) and return on capital employed (ROCE) are two of the most watched profitability ratios for Indian stocks. They answer different questions, so it's worth knowing what each one actually measures.

ROE — return on equity

ROE is net profit divided by shareholders' equity. It measures how much profit a company generates on the money shareholders have put in (and retained). A consistently high ROE signals an efficient, profitable business — but it can be inflated by heavy debt, which is where ROCE comes in.

ROCE — return on capital employed

ROCE is operating profit (EBIT) divided by capital employed (equity plus debt). Because it includes borrowed capital, it shows how efficiently the business uses all the capital at its disposal, not just equity — a cleaner read on operating quality for a leveraged company.

Getting both via API

Call GET /v1/stocks/{ticker}/ratios and read the roe and roce fields (both as percentages), alongside P/E, P/B, and dividend yield. The same canonical values appear on each stock page and power the screener, so you can filter the market by ROE/ROCE thresholds too.