Accounting for IGCSE & O level - Advanced Principles (Section 5 - No. 35)
What does a ROCE of 25% mean for a company?
The company is not making a profit.
The company is generating a profit of $0.25 for every $1 of capital employed.
The company has high current liabilities.
The company has a high level of debt.
Explication
ROCE is calculated as profit/capital employed.