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If ROCE is decreasing it means?

Updated: 4/28/2022
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12y ago

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You have reached a level where further capital investment is counter productive. This may be because you have created an imbalance between labour and capital, or that you have reached a point where economies of scale no longer apply. This may be a point where the capital employed needs to make a step increase, rather than a gradual increase.

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12y ago
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Q: If ROCE is decreasing it means?
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