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Hallo,
I have learnt that ROCE = Profit before interest & tax / Total capital employed
and that this can also be presented as ROCE = Profit Margin * Asset turnover ratio,
but in an example they say that ROCE = Profit Margin / Asset turnover – how this can be true, if the above is true?
Thank you!
I don’t know what example you found that in, but it is wrong.
ROCE = operating profit margin x asset turnover
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