Establishing targets for profitability, Financial Accounting

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Establishing targets for profitability

Comment on the following :

Targeting profitability

The ROCE ratio is widely used by businesses when establishing targets for profitability. These targets are sometimes made public and here are some examples: De Vere Hotels and Leisure Ltd, the UK hotels business has a target for a 10 percent ROCE by 2006/07. BSkyB plc, the satelite broadcaster has a target ROCE of 15 percent by 2011 for its broadband operation.

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Financial Accounting: Establishing targets for profitability

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