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Return on Capital Employed

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(Querist)
15 July 2011 Hi Frdz,

I have a confusion in calculating ROCE(Return On Capital Employed. It is arrived at by dividing operating profit by capital employed.
What is operating profit here?
What all are to be included and what to be deducted?
Is it same as EBIT?

PLZ HELP ME OUT.........
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CMA Ramesh Krishnan

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CMA Ramesh Krishnan (Expert)
16 July 2011 yes. Operating profit means the operating income less the expenses purely related to the operation of business. it is equal to EBTDA- Earnings before tax, depreciation & Amortization
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