Versions of ROCE Formula

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			            	Kate
			            
Versions of ROCE Formula

	          		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 ?
				      
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						            	Abhishek Bhatt
												
				                Financial Management

													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).
				                
						            	Franky Chen
												
				                Confusion

													Someone insists that ROCE = Operating Income After Tax / Operating Assets. Here is EBIT. Is it misunderstanding?
				                
						            	Jaap de Jonge
Editor, Netherlands
												
				                To Franky

													Yes, is misunderstanding. EBIT is the same as Operating Profit !
				                
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