The figures shown in the table below are an extract from the accounts of Ridgeway . (Capital employed is $9,000,000)
Gross Profit | 600,000 |
Profit Before Interest and Tax | 450,000 |
Profit Before Tax | 360,000 |
Profit After Tax | 252,000 |
What is the return on capital employed (ROCE)?
suggested solution:
Profit Before Interest and Tax | 450,000 |
Capital Employed | 9,000,000 |
ROCE in % | 5 |