Question: Return on Capital Employed (ROCE) Calculation : Compute the ROCE for a company with EBIT of $200,000 and capital employed (total assets - current liabilities)

  1. Return on Capital Employed (ROCE) Calculation: Compute the ROCE for a company with EBIT of $200,000 and capital employed (total assets - current liabilities) of $1,000,000. Discuss what this ratio reveals about the company’s efficiency in generating profits from its capital base.

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