The figures shown in the table below are an extract from the accounts of Ridgeway . (Capital employed is $8,000,000)
| Gross Profit | 700,000 |
| Profit Before Interest and Tax | 525,000 |
| Profit Before Tax | 420,000 |
| Profit After Tax | 294,000 |
What is the return on capital employed (ROCE)?
suggested solution:
| Profit Before Interest and Tax | 525,000 |
| Capital Employed | 8,000,000 |
| ROCE in % | 6.56 |