there are two differnt formulas for ROCE =1) (AVG PROFIT/INITIAL INVETSMENT)
2) (AVG PROFIT /AVG INVESTMENT)
DOUBT - WHICH ONE TO USE
DOUBT 2) ARE ROCE ROI ARR SAME?\
Ask the Tutor ACCA FM
ROCE ,ARR AND ROI
4y ago#1Which to use depends on the information available in the question and the requirements.
The examiner usually prefers the first of the two formula you write to be used.
They are all the same principle.
Sign in to reply to this topic.