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Return on assets

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Return on assets

  • This topic has 2 replies, 2 voices, and was last updated 12 years ago by MikeLittle.
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  • October 15, 2012 at 10:02 am #54706
    yannick
    Participant
    • Topics: 2
    • Replies: 8
    • ☆

    please what are the primary,secondary and tertiary ratios, for return on assets

    October 15, 2012 at 7:52 pm #105597
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23309
    • ☆☆☆☆☆

    Primary is Return on capital employed = PBIT / capital employed

    Secondary is the subdivision of Roce ie Asset / turnover ( “Revenue / capital employed” and profit percentage ( PBIT / revenue )

    I believe that tertiary is something involving management but you’ll have to check that out for yourself – try google

    October 15, 2012 at 7:54 pm #105598
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23309
    • ☆☆☆☆☆

    This is what I got from google

    What is the tertiary ratio in pyramid ROA?
    the ratio concerned with top management

    Read more: https://wiki.answers.com/Q/Return_on_assets_ratio_pyramid_showing_primary_secondary_and_tertiary_ratios#ixzz29Op1uwDz

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