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English definition of “return on capital”

return on capital

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.
(Definition of return on capital from the Cambridge Business English Dictionary © Cambridge University Press)
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