Mathematics · Financial Ratios
Which of the following formula accurately represents the calculation for the Return on Capital Employed (ROCE)?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1[Profit after interest and tax ÷ (Shareholders' equity + Non-current liabilities)] × 100
- 2(Profit after interest and tax ÷ Ordinary shareholders' funds) × 100
- 3[Profit before interest and tax ÷ (Shareholders' equity + Non-current liabilities)] × 100✓
- 4(Profit before interest and tax ÷ Ordinary shareholders' funds) × 100
Correct answer
[Profit before interest and tax ÷ (Shareholders' equity + Non-current liabilities)] × 100
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