How to work out the return on capital emplyed please?

Hi everyone,

I am trying to work out the Return on Capital Employed for Staylite LTD

I know the formula for ROCE is

operating profit
Non current assents + net current assets X 100%

but i am getting the wrong percentage compared to the answer

I am doing

3,467
600+198-182

which is 5.62%

a bit off the answer of 65.4%

10785925696_2ffdbee760_c.jpg
Untitled by AdamSWilkinson, on Flickr

Comments

  • tillyjbc
    tillyjbc Registered Posts: 46 ? ? ?
    Hi Topcat! Use Operating Profit, not Gross Profit for ROCE. 403 / 616 x 100 = 65.42% :)
  • kkelly
    kkelly Registered Posts: 51 ? ? ?
    Hi Topcat,
    Your on the right line. R.O.C.E. is Operating Profit/ Total Equity + Non-Current Liabilities * 100%
    which from the question is 403 / 616 * 100% = 65.4% The 616 is 450+166!
    Hope this helps!
    Kevin
  • topcat
    topcat Registered Posts: 452
    thank you both i was being blind and looking at the wrong figure for the top half of the equation :blushing:

    you have saved me pulling any more hair out
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