ocr: The Calculation Capital employedis found from the Balance Sheet as the sum of all long-term tunds invested in the ousiness which is equal to the total of shareholders funds (E2000) plus total long-term debt capital E1400). . Hence the total capital employed by the pusiness equals £3400. We can now calculate: ROCE = C378/L3400) X - 100%=11.12%. ROCE stands for. Return on Capital Employed] This ratio tells us that for every E1: invested in the pusiness it. has succeededin generating 11.12pof profit.
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