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return on capital employed

Forums › Ask CIMA Tutor Forums › Ask CIMA F2 Tutor Forums › return on capital employed

  • This topic has 2 replies, 2 voices, and was last updated 8 years ago by P2-D2.
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    Posts
  • November 29, 2016 at 11:00 am #352337
    Anonymous
    Inactive
    • Topics: 1
    • Replies: 8
    • ☆

    Hi there,

    When doing the capital employed ratio. if you are given a financial statement, how do you know which figures to pick for capital employed. stupid question but I’m not sure.

    is it non current assets and ordinary share capital? Im not sure

    November 29, 2016 at 11:32 am #352343
    Anonymous
    Inactive
    • Topics: 1
    • Replies: 8
    • ☆

    sorry got it, sorry

    current assets minus current liabilities

    December 4, 2016 at 7:53 pm #353829
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7141
    • ☆☆☆☆☆

    Hi,

    Capital employed is equity plus net debt. It isn’t current assets less current liabilities.

    Thanks

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