The management of Alpha Ltd calculates ROCE using profit before interest and tax as a percentage of

Question:

The management of Alpha Ltd calculates ROCE using profit before interest and tax as a percentage of net closing assets. Discuss how this definition might be improved.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Financial Accounting And Reporting

ISBN: 9781292255996

19th Edition

Authors: Barry Elliott, Jamie Elliott

See More Books

Question Posted: Nov 04, 2022 08:52 AM

See More Questions

(a) Berlan plc has annual earnings before interest and tax of 15 million. These earnings are expected to remain constant. The market price of the company's ordinary shares is 86 pence per share cum...
A firm has earnings before interest and tax of $1,000,000, interest of $200,000, and net income of $400,000 in Year 1. Required a. Calculate the degree of financial leverage in base Year 1. b. If...
Earnings before interest and tax (EBIT), rather than profit, is sometimes used as the numerator in the return on asset ratio. Discuss the rationale for using EBIT rather than profit.
For the attractive-nuisance doctrine to apply, the possessor need not be aware that children are likely to trespass on his land or have reason to know that the condition poses an unreasonable risk of...
A Poisson random variable has a PMF of the form (a) Find the characteristic function,ÏX( Ï ) . (b) Find the first three nonzero terms in the Taylor series expansion of ln[ÏX(Ï)]....
Meir, Benson, and Lau are partners and share income and loss in a 1:4:5 ratio (in percents: Meir, 10%; Benson, 40%; and Lau, 50%). The partnership's capital balances are as follows: Meir, $36,000;...
Calculate the optical efficiency on November 13 of an evacuated tube collector array at noon and $2 \mathrm{p} . \mathrm{m}$. if the direct normal insolation is $600 \mathrm{~W} / \mathrm{m}^{2}$...
A firm has experienced a decrease in its current ratio but an increase in its quick ratio during the last three years. What is the likely explanation for these results?
7 5 points 8 Proctor & Gamble reports total dollar amount of assets as $119,307. This means the actual total dollar amount of assets at the end of the year is: $119,307,000,000 $119,307,000 $119,307...
1. Do you agree with the decision made by Marcel Ger? Explain your answer. 2. What other modes of market entry into the Australian market might GG have considered? Why are these viable alternatives?
Discuss why an increasing current ratio might not be an indicator of better working capital management.
Explain in what circumstances a decrease in the rate of non-current asset turnover might be a positive indicator.
What happens to the electric potential at a point in space due to a point charge if the charge is subsequently surrounded by some kind of oil?
An electrical engineer has developed a modified circuit board for elevators. Suppose 3 modified circuit boards and 6 elevators are available for a comparative test of the old versus the modified...
An engineer wants to compare two busy hydraulic belts by recording the number of finished goods that are successfully transferred by the belts in a day. Describe how to select 3 of the next 6 working...
If the probability density of a random variable is given by \[f(x)= \begin{cases}x & \text { for } 0
Given the probability density $f(x)=\frac{k}{1+x^{2}}$ for \(-\infty
If the distribution function of a random variable is given by \[F(x)= \begin{cases}1-\frac{4}{x^{2}} & \text { for } x>2 \\ 0 & \text { for } x \leq 2\end{cases}\] find the probabilities that this...
Let X be a compact metric space. A closed subspace of C(X) is compact if and only if it is bounded and equicontinuous.
What is a manufacturing system?
Options complete the following sentence for each of these investors: a. A buyer of call options. b. A buyer of put options. c. A seller (writer) of call options. d. A seller (writer) of put options....
Option Pricing you notice that shares of stock in the Patel Corporation are going for $50 per share. Call options with an exercise price of $35 per share are selling for $10. Whats wrong here?...
Option Pricing you notice that shares of stock in the Patel Corporation are going for $50 per share. Call options with an exercise price of $35 per share are selling for $10. Whats wrong here?...
Jackson, a self-employed taxpayer, uses his automobile 90% for business and during 2023 drove a total of 15,000 business miles. Information regarding his car expenses is listed below. Business...
Bel Air Flying Service started operations on December 1 , 2 0 . The trial balance in Figure 1 3 . 6 was prepared at month - end. Record the following adjustments in the General Journal, then make an...
Founded in 1960, the Arpeggio Music Company is a family-owned and operated firm specializing in the educational music market. Located in the U.S. Middle West, its products and services include...

The management of Alpha Ltd calculates ROCE using profit before interest and tax as a percentage of

Question:

Step by Step Answer:

The return on capital employed ROCE is a popular metric used to evaluate a companys performance ROCE ...View the full answer

Financial Accounting And Reporting

Students also viewed these Business questions