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ROIC ROCE

ROIC = NOPLAT/?

ROCE = EBIT/?

Correct denominators please

Forgive me but I cannot find a clear answer in the text. 

EDIT: is Invested Capital supposed to be = Net Operating Assets?



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ROIC = NOPLAT / IC

ROCE = EBIT / (D+E)

If anyone find the question related with these 2, kindly post in here.

Topic tests / EOC is preferable more than schweser questions.

Thanks

"The end is near" (Thanos)

Roic= noplat/ic where ic= fixed assets+ current assets- current liabilities-cash
Rice=ebit/(d+e)

If you try to fail and you succeed what have you done?

Thank you. I see conflicting answers depending on the source.

I assume MVdebt + MVequity for ROCE?

Is ROCE the same as MVIC?

JeffO15 wrote:

Is ROCE the same as MVIC?

I dont think so.MVIC is closely related to Enterprise vaue. MVIC=MV of debt+MV of equity+prefered capital+cash and other financial assets.

ROCE=Return on capital employed=%

MVIC=Market value of invested capital=$

One is a ratio, the other is an absolute value. So they are different things.

pffft

While calculating ROCE, which year’s capital employed to be  used.?

1) Current year’s capital employed? (or)

2) Last  year’s capital employed? (or)

3) Average of last year’s and current year’s capital employed?

can anyone please clarify?