ROCE has increased from 28% in 20X2 to 35% in 20X3.
Which of the following statements relating to this increase is/are correct?
1
An increase in profit margin in 20X3 could account for the increase in ROCE.
The increase suggests the company is more efficient in employing its resources in 20X3 compared
to 20X2.
3
If profit margin has remained constant, the increase in ROCE suggests a decrease in asset
A
1 and 2 only
2 and 3 only
C
1 and 3 only
All three statements are correct
BPP Tutor Toolkit Copy
//
INTERPRETATION OF FINANCIAL STATEMENTS