Science Fair Project Encyclopedia
Return on capital
(Redirected from Financial return)
Return on Capital, also known as Return On Invested Capital (ROIC) is defined as
Net Income / Invested Capital
usually expressed as a percentage. When the ROIC is greater than the cost of capital (usually measured as weighted average cost of capital), the company is creating value. When it is less than the cost of capital, value is destroyed.
See also
- Cash Flow Return on Investment (CFROI)
- Cash Return on Gross Investment (CROGI)
- Profitability
- Return On Assets (ROA)
- Return On Equity (ROE)
- Return on Capital Employed (ROCE)
- Return on Invested Capital (ROIC)
- Return On Investment (ROI)
- Return On Net Assets (RONA)
- Return On Revenue (ROR)
- Return on Sales (ROS)
- Risk Adjusted Return on Capital (RAROC)
10-26-2009 08:16:03
The contents of this article is licensed from www.wikipedia.org under the GNU Free Documentation License. Click here to see the transparent copy and copyright details
The contents of this article is licensed from www.wikipedia.org under the GNU Free Documentation License. Click here to see the transparent copy and copyright details