DFS help CAPITAL EMPLOYED!

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tezza.b
tezza.b Registered Posts: 14 New contributor 🐸
in AAT Level 4 (Level 8 in Scotland)
When calculating Return on capital employed as...

profit before interest and tax divided by capital employed...

what figure is everyone using as capital employed??? as i have seen it done different ways!!

sometimes using just the net asset figure..
or net assets + long term liabilities...
or total assets minus current liabilities!

which one is correct?! please help! :confused1:

and does anyone think we could get a consolidated account with an investment in associate??

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  • lala2009
    lala2009 Registered Posts: 95 Regular contributor ⭐
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    I am using equity plus long term liabilities :) not sure about that income statement - I'm praying for a balance sheet!! :D
  • troy
    troy Registered Posts: 275 Dedicated contributor 🦉
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    Lala is right!

    You should use equity + long term assets - if you think about it what you are trying to look at is how much money you have at your disposal.

    Good luck for tomorrow
    x

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