ROCE can be decomposed into three ratios. Which of the following is the correct set of ratios?
A) Gross margin percentage, return on assets, current ratio
B) Asset turnover, effective tax rate, capital structure leverage
C) Capital structure leverage, asset turnover, profit margin for ROCE
D) Asset turnover, Debt to equity ratio, profit margin for ROCE

Question

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The Answer of ROCE can be decomposed into three ratios. Which of the following is the correct set of ratios?
A) Gross margin percentage, return on assets, current ratio
B) Asset turnover, effective tax rate, capital structure leverage
C) Capital structure leverage, asset turnover, profit margin for ROCE
D) Asset turnover, Debt to equity ratio, profit margin for ROCE

ROCE Can Be Decomposed into Three Ratios