Question

Why do financial analysts often prefer ROCE over ROA when evaluating the capital efficiency of capital-intensive firms with significant debt loads?

A ROA uses net income in the numerator, which is distorted by interest expense variations from capital structure differences.
B ROCE ignores current liabilities completely.
C ROA includes operating leases while ROCE excludes them.
D ROCE is unaffected by taxes, whereas ROA ignores operating income.
E ROA incorporates total liabilities in its denominator, making heavily leveraged firms appear artificially more efficient
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