Peach Co’s latest results are as follows:
$000
Profit before interest and taxation 2,500
Profit before taxation 2,250
Profit after tax 1,400
In addition, extracts from its latest statement of financial position are as follows:
$000
Equity 10,000
Non-current liabilities 2,500
What is Peach Co’s return on capital employed (ROCE)?
Operating profit/(D + E) = 100 x 2,500/(10,000 + 2,500) = 20%.