performance measurmentForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › performance measurmentThis topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.Viewing 2 posts - 1 through 2 (of 2 total)AuthorPosts June 7, 2017 at 7:46 am #391203 adarsh1997ParticipantTopics: 644Replies: 282☆☆☆☆Hi John!I am having some problem to understand how by reducing capital employed through the repayment of long term debt could result into an increase on ROCE. Could you please explain?Thanks. June 7, 2017 at 2:41 pm #391343 John MoffatKeymasterTopics: 57Replies: 54547☆☆☆☆☆The return on capital employed is profit before interest and tax divided by the long term capital (debt + equity).If the denominator falls (because debt has been repaid) then the ROCE will increase. Make up some numbers and see what happens then you reduce debt.AuthorPostsViewing 2 posts - 1 through 2 (of 2 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In