Show how the ROCE ratio forABC Ltd. the company that wehave been discussing this weekcan be analysed into the twoelements (Operating profitmargin and sales revenue tocapital employed) for each of theyears 2018 and 2019. Whatconclusions can you draw fromyour figures?

Based on the provided sources, Return on Capital Employed (ROCE) is a crucial financial ratio used…

Answered: Show how the ROCE ratio for ABC Ltd.…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Show how the ROCE ratio for ABC Ltd. the company that we have been discussing this week can be analysed into the two elements (Operating profit margin and sales revenue to capital employed) for each of the years 2018 and 2019. What conclusions can you draw from your figures?