DFS ratio in course companion

alwa-37 Registered Posts: 38 ? ? ?
hi all
could u help me solving a ratio ques In DFS course companion, chapter 10, Ratio, pg 236, I dnt knw how to calculate capital employed?

are u using dfs course companion?



  • *Sarah*
    *Sarah* Registered Posts: 172 ? ? ?
    Hi Alwa

    Return on Capital employed is calculated as follows;

    Net Profit / capital employed X 100

    I'm not sure what course companion is I'm afraid

  • alwa-37
    alwa-37 Registered Posts: 38 ? ? ?
    hmm i know the formular but ques asked in a different way so i'm confuesed.. i asked my lecturer but it doesnt work. :001_unsure:

    we use couse companion n revision companion in aat

    dnt u use it?:confused1:
  • StevenMorgetroyd
    StevenMorgetroyd Registered Posts: 6 Regular contributor ⭐ ? ⭐
    You mention that it is done a different way, it could be that you need to work it out in days rather than a percentage. If that is the case, you need to do "capital employed / Net Profit X 365". This causes a lot of confusion because the capital employed and net profit switch between calculating % or days.
  • crispy
    crispy Registered Posts: 465 Dedicated contributor ? ? ?

    Capital Employed = Equity + Non-current Liabilities or...

    Non Current Assets + Current Assets - Current Liabilties (ie: ignore Non-current liabilitIes)

    Return On Capital Employed = Operating Profit / Captial Employed X 100

  • alwa-37
    alwa-37 Registered Posts: 38 ? ? ?
    thanx but these formulas deosnt work.. its v hard one and i know one way to get the correct ans but i'm not satisfied with the reason given by my tutor:001_unsure:

    thats why i want find beter way to do it or beter reason for it:confused1:
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