a net profit margin of 10% & asset utilisation (i.e. sales/total assets) of 1.5 & a current. what is the ROCE?

Answer 1

ROCE is net profit (P) / cap. employed (Assets)

We don't know P, but we do know P is 10% of Sales.

We also know that Sales is 1.5 x Assets, so P = 10% x 1.5 x Assets and we have :-

ROCE = [ 10% x 1.5 x Assets ] / Assets = 15%.