Versions of ROCE Formula

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			              Return on Capital Employed > Best Practices > Versions of ROCE Formula
			            
				              Versions of ROCE Formula

			                Kate
			            
	          		I am a bit confused: why are there so many different variations of the same formula for example I was told that ROCE was Net Profit divided by Fixed Assets plus Current Assets ? (...) Read more? Sign up for free

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			                  	Financial Management

		                  		Abhishek Bhatt
												
													Kate, I would like to answer your question that a same formula can be expressed in a number of ways. As you said that ROCE =NP / FA + CA.

Above formula can also be expressed as : EBIT(net profit) / (Fixed Assets + Net Current Assets and Not Current Assets) or (Net worth + long term liabilities).
				                
			                  	Confusion

		                  		Franky Chen
												
													Someone insists that ROCE = Operating Income After Tax / Operating Assets. Here is EBIT. Is it misunderstanding?
				                
			                  	To Franky

		                  		Jaap de Jonge, Editor, Netherlands
												
													Yes, is misunderstanding. EBIT is the same as Operating Profit !
				                
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Versions of ROCE Formula
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