The figures shown in the table below are an extract from the accounts of Ridgeway . (Capital employed is $4,000,000)
| Gross Profit | 200,000 |
| Profit Before Interest and Tax | 150,000 |
| Profit Before Tax | 120,000 |
| Profit After Tax | 84,000 |
What is the return on capital employed (ROCE)?
suggested solution:
| Profit Before Interest and Tax | 150,000 |
| Capital Employed | 4,000,000 |
| ROCE in % | 3.75 |