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Roce (investment appraisal)

This topic has 1 reply, 2 voices, and was last updated 2 years ago by John Moffat.

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April 19, 2022 at 1:19 pm #653914
omaimairfan05
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Dear sir,
How roce ignore size of investment being a relative measure rather then absolute measure?
April 19, 2022 at 2:42 pm #653925
John Moffat
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The ROCE does not ignore the size of the investment. It is a relative measure because as it is a % it can be used to compare the profitability of companies or divisions of different sizes.
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