return on capital = earnings before interest and tax / capital employed * 100

The way to calculate the Return on Capital (ROC) or Return on Investment (ROI) is dividing net earning between the total capital. The result is multiplied by 100, and you get the percentage.

It is similar to Return on capital employed (ROCE).

There are two components of return. These are followings: 1. Yield 2. Capital Gain

Return on capital employed means an accounting ratio used in finance, valuation, and accounting. Not to be confused with return on equity, it is similar to return on assets yet takes into account sources of financing.