General Knowledge · Accounting & Finance
Which of the following is the best definition of Return on Capital Employed (ROCE)?
- 1Profit for the period ÷ (Total equity + Non-current liabilities) × 100
- 2Profit for the period ÷ Total equity × 100
- 3Profit before financing and income taxes ÷ (Total equity + Non-current liabilities) × 100✓
- 4Profit 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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