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ROCE

This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.

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August 5, 2020 at 3:06 pm #579349
lokeshdh00
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We know he ROCE formula is –
profit before intrest and tax / Long term capital or capital employed x 100
but does the Capital employed include – Shareholder’s funds , Reserve , Non-current asset (All of them )
August 5, 2020 at 3:59 pm #579355
John Moffat
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Capital employed = all shareholders funds (which is share capital + reserves) + long term debt borrowing.
Do watch my free lectures on this. The lectures are a complete free course for Paper MA and cover everything needed to be able to pass the exam well.
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