return on capital

return on capital
The return earned by an investor from a specific investment or group of investments measured in terms of a percentage return on the amount of capital invested.
See return on equity. American Banker Glossary

* * *

return on capital reˌturn on ˈcapital abbreviation ROC noun [singular, uncountable] ACCOUNTING
1. the profit on an investment in relation to the amount invested; = RETURN ON INVESTMENT:

• US companies have invested more than $7 billion in Chile with an annual return on capital of more than 40%.

2. also return on capital employed abbreviation ROCE a company's profit for a particular year in relation to its capital (= money from shareholders and lenders):

• Its return on capital invested was 31%, putting it in the same league as other big food companies.

* * *

return on capital UK US noun [C or U] (ABBREVIATION ROC) FINANCE, ACCOUNTING
(also return on capital employed) a company's profit for a particular period compared with the capital invested in the company. This shows how effectively the company is using the amount of capital invested in it to make a profit: »

Last year they made a return on capital of 28%.

(also return on investment) the profit from an investment compared with the amount invested in it: »

Our investment in real estate produced a healthy 20% return on capital.


Financial and business terms. 2012.

Игры ⚽ Поможем сделать НИР

Look at other dictionaries:

  • Return on capital — Return on invested capital (ROIC) is a financial measure that quantifies how well a company generates cash flow relative to the capital it has invested in its business. It is defined as Net operating profit less adjusted taxes divided by Invested …   Wikipedia

  • Return of capital — (ROC) refers to payments back to capital owners (shareholders, partners, unitholders) that exceed the growth (net income/taxable income) of a business. It should not be confused with return on capital which measures a rate of return . The ROC… …   Wikipedia

  • return on capital — index income Burton s Legal Thesaurus. William C. Burton. 2006 …   Law dictionary

  • Return Of Capital — A return from an investment that is not considered income. The return of capital is when some or all of the money an investor has in an investment is paid back to him or her, thus decreasing the value of the investment. This is not considered an… …   Investment dictionary

  • return on capital — kapitalo grąža statusas T sritis Gynyba apibrėžtis Procentais išreiškiama suma, gauta naudojant kapitalą. atitikmenys: angl. return on capital šaltinis NATO mokymų ir pratybų finansavimo terminų žodynas AAP 43(1), 2009 …   Lithuanian dictionary (lietuvių žodynas)

  • Return on capital employed — (ROCE) is used in finance as a measure of the returns that a company is realising from its capital employed. It is commonly used as a measure for comparing the performance between businesses and for assessing whether a business generates enough… …   Wikipedia

  • return on capital employed — (ROCE) Measures the operating profit of a company as a percentage of capital employed and so gives a measure of overall efficiency in using available resources to generate profit. Practical Law Dictionary. Glossary of UK, US and international… …   Law dictionary

  • Return On Capital Gains — The return that one gets from an increase in the value of a capital asset (investment or real estate). The return on capital gain is the measure of the investment gain for an asset holder, relative to the cost at which an asset was purchased.… …   Investment dictionary

  • return on capital employed — ( ROCE) Indicator of profitability of the firm s capital investments . Determined by dividing Earnings Before Interest and Taxes by (capital employed plus short term loans minus intangible assets). The idea is that this ratio should at least be… …   Financial and business terms

  • Return on Capital Employed — Der Return on Capital Employed (ROCE) ist eine betriebswirtschaftliche Kennzahl die misst, wie effektiv und profitabel ein Unternehmen mit seinem eingesetzten Kapital umgeht und stellt quasi eine Weiterentwicklung der Gesamtkapitalrentabilität… …   Deutsch Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”