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Return on Investment Capital
(redirected from Return on capital)

   Also found in: Dictionary/thesaurus, Legal, Acronyms, Wikipedia 0.01 sec.
Return on Investment Capital
A measure of how efficiently a company generates cash flow compared to how much capital is invested in the company. It is calculated by taking its net operating profit after taxes and dividends and dividing by the total amount of capital invested and expressing the result as a percentage. Companies seek to have a return on investment capital greater than its cost of capital. It is also called return on invested capital and simply return on capital.


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This is all part of our strategy to steer the business back to delivering a much improved return on capital employed as possible.
Over and above our monitoring of the year-on-year trends in turnover, profit before tax and earnings per share, the Group also gives careful consideration to its return on capital employed and return on sales and for the year to June 30 2006, these particular profit measures stood at 14% and 19% respectively.
Ahlstrom's return on capital employed (ROCE) was close to the company's long-term target level of 13%.
 
 
 
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