CAIE A-Level Business A2 10.2.2 Profitability Ratios Topic Practice

Refer to Table 1.1. For 2024, calculate the return on capital employed.

Indicative content

Responses may include:

ROCE = Profit from operations / Capital employed × 100

and / or capital employed = issued shares + reserves + non-current liabilities (1 mark if no relevant calculation)

CE $=3+13.5+16=32.5 \mathrm{~m}(1)$

ROCE $=2.6 / 32.5 \times 100(2)$

ROCE =8 % (3)

Accept 8 (3)

Other answers and marks:

ROCE for 2023

$2.5 / 30.8 \times 100=8.12 \%(2)$

One element of CE not included (2).

$2.6 / 16.5 \times 100=15.76 \%$$2.6 / 29.5 \times 100=8.81 \%$$2.6 / 19 \times 100=13.68 \%$

OFR