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November 5, 2019 at 11:55 pm
Hey, why did you use profits from operations and not profit before tax to calculate the net profit ratio?
John Moffat says
November 6, 2019 at 7:03 am
The company does not control the tax rate and so taking the profit after tax is not measuring how well the company is being run.
November 18, 2019 at 7:03 pm
So i understand that the company has no control over tax, but that is taken in account after profit, i need to know why you chose “profit from operations” for ROCE when the want the “profit before tax”?
Thank you in advance
December 7, 2018 at 11:41 am
is the capital Employed the same as Total Long term Capital?
September 1, 2018 at 1:18 pm
Why is the ratio called “asset turnover” when you working with sales and long term capital?
September 1, 2018 at 3:29 pm
Long-term capital is equal to the net assets. I explain the relevance of the measure in the lecture.
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