- measure of return on investment
ROCE IS USEFUL TO-
- evaluate the overall performance of the business
- provide a target return for individual projects
- benchmark performance with competitors
roce % - operating profit\ total equity+ non current liabilities x100
evaluating roce
-roce will vary between industries
-it is based on a snapshot of a balance sheet
-comparisons over time and with key competitors is most useful
ROCE IS A WIDELY USED MEASURE OF RETURN ON INVESTMENT BY A BUSINESS.
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