ROCE

This topic has 1 reply, 2 voices, and was last updated 2 years ago by IAW3005.

Viewing 2 posts - 1 through 2 (of 2 total)

Author

Posts
March 7, 2024 at 10:13 am #702286
wavey
Participant
- Topics: 7
- Replies: 1
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
IAW3005
Keymaster
- Topics: 4
- Replies: 1625
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%
Author

Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.