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

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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.

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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.

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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

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