Questions about Financial Ratio

CFA General
#1

I am doing some tutorial questions about financial ratio and encounters some problems.

  1. Why we use Profit AFTER Interest & Tax as the numerator in Return of Equity whereas Profit BEFORE Interest & Tax in Return of Assets?

  2. Why an increase in Gross Profit will decrease Return of Capital Employed?
    Shouldn’t increase in gross profit will push up Profit BEFORE Interest & Tax and increase Return of Capital Employed?

  3. Why repayment of the loan will decrease Capital Employed, which in turn will increase Return of Capital Employed?

    Isn’t it that repayment of loan would decrease payables in current liabilities, increase Capital
    Employed and ultimately decrease Return of Capital Employed?