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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Financial analysis
Dear Sir,
While calculating ratios such as Profit margin (net profit/sales*100) do we only include profits attributable to owners?
Also for ROCE… The capital employed section which I derive by equity+long term liabilities… we don’t include NCI right?
Ratios done on consolidated financial statements.
Regards
What other profits are there? You asking whether, in a consolidation situation, we exclude from the calculation the nci share of profits and the nci’s element of capital employed
No, include ALL trading profits and include ALL capital employed
