ROCE calculation

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December 23, 2017 at 6:39 pm #424586
sam543
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Hello,

Could you please explain why current liabilities are excluded from the Capital employed?

Thank you in advance.
December 24, 2017 at 9:58 am #424635
John Moffat
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They aren’t excluded.

Capital employed is share capital and reserves plus long term liabilities, which is always equal to total assets less current liabilities.
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