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ROCE

This topic has 1 reply, 2 voices, and was last updated 8 months ago by LMR1006.

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March 7, 2024 at 10:13 am #702286
wavey
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If ROCE is 18% and asset turnover is 1.5, what would ROCE be if gross profit went up by 4%?
March 7, 2024 at 11:06 am #702291
LMR1006
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ROCE = Profit / CE so if we say 18% because it’s say 180/1000
Asset turnover = Sales / CE = 1.5 because its say 1500/1000
Then if profit increases by 4% so 180* 1.04
Then new ROCE 187.2 / 1000 = 18.72%
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