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For ROCE, we should take Operating income/Non current liabilities+Equity ok
My doubt is whether we should take any long term pension liabilities or deferred tax liabilities or deferred revenue which is included in the non-current liabilities section of SOFP or not?
I’m confused because these items are not exactly injected into the company for running its operations
Inclusion of long-term debt makes sense because the company can use those funds for its operations
But Deferred revenue is just some revenue recorded in advance, pension liabilities is also a sort of long term expense which is not exactly an injection of funds in the company same goes with Deferred tax liabilities..But the formula says to take Non-current liabilities blindly
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