The figures shown in the table below are an extract from the accounts of Ridgeway . (Capital employed is $1,000,000)
| Gross Profit | 300,000 |
| Profit Before Interest and Tax | 225,000 |
| Profit Before Tax | 180,000 |
| Profit After Tax | 126,000 |
What is the return on capital employed (ROCE)?
suggested solution:
| Profit Before Interest and Tax | 225,000 |
| Capital Employed | 1,000,000 |
| ROCE in % | 22.5 |