The following facts have been extracted from the annual accounts of Zeta Ltd: Net sales 30 lakh,

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The following facts have been extracted from the annual accounts of Zeta Ltd:

Net sales ₹30 lakh, EBIT ₹6 lakh, equity net worth ₹18 lakh, long-term debt 6 lakh, short-term interest bearing debt ₹2 lakh. Total interest payment ₹1.5 lakh.

If tax rate is 30%, then calculate

(i) ROIC and 

(ii) ROE and how both of these can be decomposed to analyse the effect of changes in different constituents.

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Financial Accounting

ISBN: 9780071078023

1st Edition

Authors: Dhanesh K. Khatri

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