Accounting – 6.1 Calculation and understanding of accounting ratios | e-Consult
6.1 Calculation and understanding of accounting ratios (1 questions)
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Calculation:
- ROCE = (PBIT / Capital Employed) x 100
- ROCE = (£120,000 / £800,000) x 100
- ROCE = 0.15 x 100
- ROCE = 15%
Answer: The Return on Capital Employed (ROCE) for ABC Ltd is 15%.