return on capital Meaning in the Cambridge English Dictionary Cambridge dictionaries logo

Meaning of “return on capital” in the English Dictionary

"return on capital" in Business English

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return on capitalnoun [C or U]

uk   us   ( abbreviation ROC) FINANCE, ACCOUNTING
(also return on capital employed) a company's ​profit for a particular ​period compared with the ​capitalinvested in the ​company. This ​shows how ​effectively the ​company is using the ​amount of ​capitalinvested 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 ​amountinvested in it: Our ​investment in ​realestateproduced a ​healthy 20% ​return on ​capital.
(Definition of return on capital from the Cambridge Business English Dictionary © Cambridge University Press)
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“return on capital” in Business English

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