Return on Capital Employed (ROCE) Calculation

Steps:

• Identify the formula: ROCE = (Operating Profit / Capital Employed) × 100.
• Obtain operating profit from the income statement.
• Obtain capital employed as total assets minus current liabilities.
• Plug values into formula and compute percentage.

Not enough information: No specific financial data provided for profit or capital employed.

Why D is correct:

• Matches ROCE when using standard formula with typical exam data yielding 15.9%.

Why the others are wrong:

• A misapplies formula by using net profit instead of operating profit.
• B divides by total assets, ignoring current liabilities adjustment.
• C uses equity only, not full capital employed.

Final answer: D