InvestorQ : A company total assets, current liability, and net operating income are 200000,120000,and 25000, respectively. what is the company return on capital employee?
Yadhu Krishnan made post

A company total assets, current liability, and net operating income are 200000,120000,and 25000, respectively. what is the company return on capital employee?

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Swapnil Sarang answered.
2 years ago
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ROCE(Return on capital employed) is basically a ratio which measures the company's profit & the efficiency for the capital used. This is mainly seen to check if the company is generating profits from the capital.
The basic for checking ROCE = EBIT/Capital Employed.
Where, EBIT - Earnings before interest & Tax
Capital Employed - Total assets minus liabilities.
In the case shared by you, ROCE = 200000/120000-25000
= 2.105
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