PEV - Section 2 - Ratios

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fedup
fedup Registered Posts: 5 New contributor 🐸
in AAT Level 4 (Level 8 in Scotland)
Morning....

Return on Capital Employed (ROCE)

Can I just double check the ratio is;

Operating Profit / Capital Employed (Equity + Long Term Loan) x 100

I've lost count at how many resits I have done, and its only 10.35am and I have a headache already...... oh the joys! :confused1:

Fedup
x

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  • Hayman
    Hayman Registered Posts: 36 Regular contributor ⭐
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    hayman

    Hi fed up

    I remember the ratio as PBIT/Net Assets, especially for PEV if this is any help.

    Good luck:001_smile:
  • lou123
    lou123 Registered Posts: 53 Regular contributor ⭐
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    I know how you feel - these ratios are driving me mad!

    Return on Capital Employed (ROCE):

    Profit before interest and tax (profit from operations) /
    Capital Employed (capital and reserves plus long-term liabilites)

    It shows the net profit as a % of total capital.

    All the best, Lou:001_smile:
  • fedup
    fedup Registered Posts: 5 New contributor 🐸
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    Thanks

    BUT

    What does PBIT stand for ??!!?!?!?
  • fedup
    fedup Registered Posts: 5 New contributor 🐸
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    Thanks lou....
  • Hayman
    Hayman Registered Posts: 36 Regular contributor ⭐
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    PBIT Stands for Profit before interest and tax (operating profit)

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