ROCE

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
What did everyone divide the profit by - did you include the £800,000 (is that the right figure?) for the, was it long-term liabilites? I did cos I viewed them as long term investments even though they are loans/liabilities etc. It threw me.

Comments

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

    I included the long term loans,but im now convinced I shouldnt as the formula is :

    Turnover/Fixed assets + Net Current Assets * 100
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:ROCE

    It should be profit/assets+ long term loans - I found in my text book when I went home that it is net assets + long term liabilities which confused me!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:ROCE

    Is it???
    Well hopefully thats the case!!! :lol:

    Maybe theyll at least give us the credit for understanding the formula.

    its gonna be a long 11 weeks!!

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