ROCE

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:26AM in AAT student discussion
I could have sworn I'd been taught to take Long term liabilities out of the equation? If not I may have made a booboo on section 2! I hope I don't lose too many marks :(!

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:ROCE

    I used net profit divided by net assets - long term liabilities but I think it is wrong it should have been plus long term liabilities.

    Never mind hopefully not too many marks lost.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:ROCE

    Actually, come to think of it Net assets includes the subtraction of long term liabilities. I worded it wrong! Ok I added long term liablities back on, does that sound right or should I have not meddled and left it be?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:ROCE

    I have spent all night stressing about this ROCE!!

    I took it as.... net assets = capital
    capital employed for roce = capital + long term liabilities.
    so i added the 800,000 long term loan back to the figure given for net assets, to divide the profit by.

    Which i think is what you've done ozzi?????

    However when looking at the other posts re this exam, everyone has completely different ROCE figures to me!!!!!!!

    arghhhhhhhhhhhhh

    miny

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