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Return On Capital Employed Formulae

Financial Management

the formulae is EBIT*(1-tax)/capital employed * 100 what is the purpose of doing (1-tax)? and why are we multiplying EBIT*(1-tax)? Forgive me if my question doesn't make sense as i am unable to interpret my doubt better


BALA GANAPATHI T

BALA GANAPATHI T

CA Inter

270

07-May-23 18:17

211

Answers (1)

Usually all returns are seen post tax because that is what an investor gets


Sriram Somayajula

Sriram Somayajula

Admin

07-May-23 19:31

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