1. 

   Adam Ahmed Keen member

   Hi all,
   
   In April 2016 Q20, the examiner has calculated ROCE using the profit after interest divided by equity + debt. Wondering if this is a mistake since ROCE uses capital profits before tax/interest, so the profits should add back the interest. Clarification on this would be helpful.
   
   Thanks,
   
   W

    

   Adam Ahmed, Oct 2, 2017

   #1
2. 

   Simon James ActEd Tutor Staff Member

   HI. Yes, the correct version of this ROCE measure should include "profit before tax and interest" in the numerator.

    

   Simon James, Oct 2, 2017

   #2

   Adam Ahmed likes this.

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