Economics · Accounting Ratios
Which of the following formulas correctly defines the Return on Capital Employed (ROCE)?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1[Profit for the period ÷ (Total equity + Non-current liabilities)] × 100
- 2(Profit for the period ÷ Total equity) × 100
- 3[Profit before financing and income taxes ÷ (Total equity + Non-current liabilities)] × 100✓
- 4(Profit before financing and income taxes ÷ Total equity) × 100
Correct answer
[Profit before financing and income taxes ÷ (Total equity + Non-current liabilities)] × 100
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