Return on Capital
Return on Capital - Return on Capital is just what it implies, the return you benefit from through the practice of investing cash capital.
Return on capital (ROC) is a ratio used in finance, valuation, and accounting. The ratio is estimated by dividing the after-tax operating income (NOPAT) by the book value of invested capital.
Contents ...
Return On Capital
See Return on Invested Capital.
Investing terms and definitions starting with
Numbers A B C D E F G H I J K L M N O P Q R S T U V W Q Y Z ...
Return on Capital, also known as Return On Invested Capital (ROIC) is defined as:
NOPLAT / Invested Capital
usually expressed as a percentage.
Risk adjusted return on capital, or RAROC, is one of the most commonly used risk vs. reward evaluation tools in the investment world.
Return on Capital
Return on capital (ROC) tells you how effectively management has been able to profitably reinvest funds back into the business. It is a key indicator of value.
Return On Capital Employed - ROCE
A ratio that indicates the efficiency and profitability of a company's capital investments.
Calculated as: ...
Return on Capital
Forward Price-to-Earnings Ratio
Philip Morris International (NYSE: PM ) ...
Return on Capital (return on invested capital)
The product of dividing the most recent 12 months of income (after taxes) by the total of the shareholder’s equity and long term liabilities.
Return on Equity ...
Return On Capital Employed
The return on capital employed or ROCE is a financial ratio that is used to determine how much money a company makes with a given investment. Unlike the ROE ratio this ratio factors in both equity an ...
Return on capital investment.
YIELD TO MATURITY
Concept used to determine the rate of return an investor will receive if a long-term, interest-bearing investment such as bonds, is held to its maturity date.
Return on Capital (return on invested capital): after tax income (latest 12 months) divided by total of shareholder's equity plus long term debt, plus other long term liabilities.
Return on capital employed
Acronym: ROCE. This figure measures the return on capital employed in percent. There are two ways of calculating returns:
a) dividend yield = ratio of dividend + tax credit to share purchase price, and ...
The Return on Capital Employed (RoCE) ratio, complements the Return on Equity (RoE) ratio.
Risk Adjusted Return on Capital (RAROC) Economic approach that includes a series of complex calculations that is used to measure returns based on the risk-adjusted capital of a financial institution.
Risk-Adjusted Return on Capital (RAROC)
Another measure of risk-adjusted profitability, derived as the ratio between P/L and value at risk.
Return on Capital Abbreviated as ROC, refers to a measure of how effectively a firm uses the money... Return on Capital Employed Abbreviated as ROCE. A measure of the returns that a firm is realizing from...
From an individual investor's point of view, diagonal spreads can offer a very attractive return on capital with only limited risk.
Return on Capital - The return on capital, or ROC, is calculated by taking the latest 12-months' net income divided by invested capital. Invested capital is defined as long term debt plus common stock and preferred equity.
One should on the one hand try to maximise the return on capital, but at a risk level that is acceptable to you.
Done correctly, stock market investing can provide an excellent return on capital. One should, however, beware of arcane strategies, the promoters of which claim may yield outrageous returns far beyond what any conservative investor should expect.
To determine the additional value derived from a project or company an analyst must find the difference between the cost of capital and the return on capital. When the difference is positive, the project is adding value.
Suppose a division produces a 12% return on capital invested. Given the risk of the division's business line would have. If investors would usually require 14% on capital invested, the division destroyed shareholder value by the EVA metric.
As Charlie Munger has pointed out, over long periods of time, the rate of return which an investor earns is likely to be very close to the total return on capital generated by a firm, adjusted for dilution in shares outstanding.
Magic Formula Investing (MFI), as described by hedge fund manager Joel Greenblatt in The Little Book that Beats the Market, consists of ranking stocks by earnings yield (cheap) and return on capital (quality), adding the rankings together, ...
Analysis, Ratio Writer,Real Assets, Real Interest, Rate,Recapitalization, Recovery Stock, Refinancing, Regional Stock Exchanges, Registrar of Companies, Reinvestment Plan, Repurchase Agreement, Reserves, Residual Value, Return on Capital Employed ...
Did you know that if you had followed MarketClub's dynamic "Trade Triangle" signals during the 6 most recent quarters, you could have made a whopping 624% return on capital?
By trading in the direction of positive interest, you would collect a premium payment every day. This would pad your bottom line profit over and over again. Not to mention, forex trading can be done with leverage, so your actual return on capital is ...
Loan Payments and Amortization
Paying Debts Early versus Making Investments
Percentage Rates APR and APY
Risks of Investments
Return on Equity versus Return on Capital
Rule of 72
Same-Store Sales ...
'Gearing' is also used in a related sense to refer to borrowings by an investment trust that boosts the return on capital and income via additional investment. When the trust is performing well shareholders enjoy an enhanced or 'geared profit'.
 See also: Capital, Return, Stock, Market, Share
  
|
RSS
