The figures shown in the table below are an extract from the accounts of Ridgeway . (Capital employed is $3,000,000)
| Gross Profit | 800,000 |
| Profit Before Interest and Tax | 600,000 |
| Profit Before Tax | 480,000 |
| Profit After Tax | 336,000 |
What is the return on capital employed (ROCE)?
suggested solution:
| Profit Before Interest and Tax | 600,000 |
| Capital Employed | 3,000,000 |
| ROCE in % | 20 |