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In Kaplan, it is saying that ratio= Sales revenue/Capital employed (net assets).
How it is saying that these both are same. Capital Employed is Equity + NCL and Net assets is Capital.
Furthermore, it is saying that change in Non Current Asset effect Capital employed. I am unable to get the relation between NCA and capital employed. Please helpThe capital employed (equity + non current liabilities) is always equal to the non-current assets plus the net current assets. This is knowledge from Paper FA (was Paper F3).
I do not have the Kaplan books (only the BPP Revision Kit) but the capital employed should not be stated as being equal to the net assets, but as being equal to the non-current assets plus the net current assets.
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