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Hello Mr. Moffat,
May I know the difference between ROCE and ROI? They are both similar.
Thank you
They are effectively the same as far as the arithmetic is concerned.
However ROCE is used to measure the performance of a company, whereas ROI is used to measure the performance of a division (because a division does not have capital employed as it is not a separate company).
Have you watched my free lectures on divisional performance? 🙂
Thanks for your brief explanation, Mr Moffat.
Yes I have watched the videos, I got the concept now. 🙂
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