Return on Common Equity focuses specifically on the performance of which group?

Return on Common Equity (ROCE) is a financial metric specifically designed to measure the profitability and efficiency of a company in generating returns for its common stockholders. This measure assesses how well a company utilizes its equity base, which consists primarily of money invested by common shareholders. By focusing on net income attributable to common shares relative to the equity held by common shareholders, ROCE provides insights into how effectively the company is rewarding those investors for their risk.

Common stockholders are the last in line to receive any dividends or claims on assets in the event of liquidation, so the ROCE is particularly important for them. It highlights the return they can expect given their investment in the equity of the firm. Therefore, the focus of Return on Common Equity being on common stockholders is what makes it a critical measure in evaluating their financial interests and the company's overall performance in terms of shareholder value creation.