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Ratios

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(Querist)
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.
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Arpit Shah

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Arpit Shah (Expert)
22 April 2015 https://www.readyratios.com/reference/analysis/capital_employed.html
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