Ratios
This query is : Resolved
22 April 2015
Sir
While Calculating ROCE(retun on capital employed).
The formula is EBIT/Capital employed.
My quary is in capital employed what are the items we have to consider.
I have considered Share Capital + Reserves & Surplus and Long Term Loans.
But in my company one consultant professional calculated the ROCE ( he also considered Short term borrowings ).
Please give your professional confirmation.
While Calculating ROCE(retun on capital employed).
The formula is EBIT/Capital employed.
My quary is in capital employed what are the items we have to consider.
I have considered Share Capital + Reserves & Surplus and Long Term Loans.
But in my company one consultant professional calculated the ROCE ( he also considered Short term borrowings ).
Please give your professional confirmation.
22 April 2015
https://www.readyratios.com/reference/analysis/capital_employed.html
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