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divisional performance

This topic has 1 reply, 2 voices, and was last updated 8 years ago by John Moffat.

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December 5, 2015 at 3:39 pm #287881
kiraboflorence
Member
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hallo,
please help me clarify the difference between ROI and ROCE.
Is it that when computing ROI we use Profits before tax and when computing ROCE we use Net profit.
thank you.
December 5, 2015 at 5:10 pm #287924
John Moffat
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- Topics: 57
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They are effectively the same except that for divisions we call it ROI and for companies we call it ROCE.
Divisions do not pay tax – it is the company as a whole that pays tax 🙂
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