Higher ROCE values indicate what about a company's performance?

A higher Return on Capital Employed (ROCE) indicates that a company is efficiently utilizing its capital. ROCE is calculated by dividing earnings before interest and tax (EBIT) by the capital employed, which reflects how well a company is generating profits from its capital investments. A higher value suggests that the company is able to generate more income per unit of capital utilized, which typically highlights effective management and operational efficiency.

This efficiency in capital utilization is essential, as it demonstrates the company's ability to maximize profits from its resources, thereby creating value for shareholders. It usually signals strong operational performance and competitive advantage in the market.

Other options do not align with the implications of a high ROCE. Over-leverage would suggest financial risk rather than capital efficiency. Low market share or high operating costs do not directly connect with ROCE values and could indicate other operational or strategic challenges a company may face.