Hi Gromit,
What is the differences between ROCE, ROE and ROI?
Sometime it will use PBIT and sometime it will use PAT for calculation.
Could you provide me the correct formula?
Thanks.
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What is the differences between ROCE, ROE and ROI?
13y ago#1ROCE and ROI are essentially the same - before tax and interest/capital employed
ROE (return on equity) is the return equity shareholders get, so must be after interest; it is also after tax. It isn't much used in profitability analysis as far as I can see.
= Income after interest, tax and preference dividends/equity.
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