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CAIE IGCSE Business Studies 7.3.7 return on capital employed

Practise ROCE questions by explaining what the ratio shows, applying the formula and giving the final percentage clearly.

Syllabus
2027–2029
Course
Business 0264

Exam points

  • Define ROCE as profit as a percentage of capital employed or profit per dollar invested.
  • Use profit divided by capital employed multiplied by 100 to calculate ROCE.
  • Show working and present the final answer as a percentage, such as 20%.

7.3.7—Return on capital employed (ROCE) question 1

[Maximum number: 2]

GTB is a business which operates in the tertiary sector．It owns 5 cafés selling food and drinks． The business uses social media as its method of promotion．The Finance Manager，Moeen，is analysing GTB＇s financial statements．An extract is shown in Table 2．1．He is considering ways to improve GTB＇s profit margin．Moeen knows there are other users that are interested in the accounts of a business．

Table 2.1

Table 2.1

（b）Calculate GTB＇s Return on Capital Employed（ROCE）．Show your working．

Working：
Final answer：

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