Return on Capital
DefinitionROC. A measure of how effectively a company uses the money (borrowed or owned) invested in its operations. Return on Invested Capital is equal to the following: net operating income after taxes / [total assets minus cash and investments (except in strategic alliances) minus non-interest-bearing liabilities]. If the Return on Invested Capital of a company exceeds its WACC, then the company created value. If the Return on Invested Capital is less than the WACC, then the company destroyed value.
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Return on Capital is ...
... part of the Accounting and Stocks subjects.
... part of the Accounting and Stocks subjects.
Return on Capital appears in these other terms
risk adjusted return on capital (RAROC), Return on Capital Employed
Return on Capital appears in the definitions of these other terms on BusinessDictionary.com
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