Question: RETURN ON CAPITAL EMPLOYED Is the formula for ROCE = operating profit/capital employed? Capital employed being Assets - Liabilities. If there are no liabilities mentioned,

RETURN ON CAPITAL EMPLOYED

Is the formula for ROCE = operating profit/capital employed? Capital employed being Assets - Liabilities. If there are no liabilities mentioned, is the Capital Employed simply Non-Current Assets+Current Assets?

Does the operating profit differ if using a Straight-Line Depreciation Model compared to Reducing Balance Depreciation? Do the Accumulated Depreciation OR Carrying Value of non-current assets need to be subtracted from the operating profit? I assumed the carrying value would be regarded as a non-current asset and thus included in the denominator of the equation?

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