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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.
ROCE 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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