Almost exactly the same as the ROCE, but excludes long-term loans, to provide the return on shareholders funds. It is calculated by dividing the profit accruing to Ordinary Shareholders (ie Profit after Tax, Interest and Preference Dividends) into the figures for ordinary share capital + reserves, and multiplying the resultant figure by 100 to give a percentage. The result should be compared to the interest that could be earned if the money was invested in a high interest account (plus inflation).