Hi sir What is the difference between ROI and ROCE as both of them are calculated by dividing PBIT by capital employed?! And I wonder what each of them are going to tell us about?
ROCE is calculated for the company as a whole, ROI is calculated just for the division (or for a specific investment by the division).
In both cases, we are interest in whether or not they exceed the target return.
All of this is explained in my free lectures. The lectures are a complete free course for Paper PM and cover everything needed to be able to pass the exam well.