ROCE is a measure of business efficiency and is a function of profitability and activity. Profitability is a measure of how much a business is earning before interest on debt and tax (Earnings before interest and tax or EBIT). Activity measures how much the business has invested in operating assets to generate that level of earnings. The attached report presents an explanation of ROCE and an analysis of ROCE for Issuers with primary listings on the NZX, NZAX and Unlisted for 2009, 2010 and 2011. The data has been compiled by Armillary Private Capital. It has a number of uses as a screen for investors and a benchmark for unlisted companies.