ACCA PM · Chapter 13 · Question 6 of 11
A company has operating profit of $180,000, revenue of $900,000 and capital employed of $1,200,000. What is its return on capital employed (ROCE)?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) 15%
Explanation
ROCE = operating profit / capital employed = $180,000 / $1,200,000 = 15%. This equals the operating profit margin (20%) multiplied by asset turnover (0.75 times).
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