answersLogoWhite

0

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

User Avatar

Wiki User

12y ago

What else can I help you with?

Continue Learning about Finance

What is the difference between ROI and ROIC?

ROI, or Return on Investment, measures the profitability of an investment relative to its cost. ROIC, or Return on Invested Capital, evaluates the efficiency of a company in generating profits from its invested capital. In summary, ROI focuses on the return on the initial investment, while ROIC considers the return on all capital invested in the business.


What is the difference between a high and a low tolerance for risk?

It's a client's willingness to trade higher rates of return on an investment for the risk of losing part or all of their capital investment.


What is the difference between return on investment and return on assets?

They are one and the same and they are used interchangeably.


What is the difference between rate of return and return on investment?

The rate of return is a percentage that shows how much an investment has gained or lost over a specific period, while the return on investment is a ratio that compares the profit of an investment to its cost.


What is the difference between dividends and capital gains and how do they impact an investor's overall return on investment?

Dividends are payments made by a company to its shareholders from its profits, while capital gains are the increase in the value of an investment over time. Dividends provide a regular income stream, while capital gains represent the profit made when selling an investment for more than its purchase price. Both dividends and capital gains can increase an investor's overall return on investment, but they impact it differently. Dividends provide immediate income, while capital gains increase the value of the investment, leading to a higher overall return when the investment is sold.

Related Questions

Difference between marginal efficiency of investment and marginal efficicency of capital?

MEC is the expected rate of return on capital and MEI is the expected rate of return on investment.


What is the difference between ROI and ROIC?

ROI, or Return on Investment, measures the profitability of an investment relative to its cost. ROIC, or Return on Invested Capital, evaluates the efficiency of a company in generating profits from its invested capital. In summary, ROI focuses on the return on the initial investment, while ROIC considers the return on all capital invested in the business.


The difference between the amount of money received from selling an investment and the amount of money spent to purchase the investment its known as?

The difference between the amount of money received from selling an investment and the amount of money spent to purchase the investment is known as the capital gain or loss. When the capital gain or loss is then compared to the initial investment (through division), the result is the capital gains yield or return on investment (assuming there are no cash flows such as coupon payments or dividends).


What is the difference between investment and expenditure?

An investment you expect a return, with the other, you don't.


What is the difference between a high and a low tolerance for risk?

It's a client's willingness to trade higher rates of return on an investment for the risk of losing part or all of their capital investment.


What is the difference between return on investment and return on assets?

They are one and the same and they are used interchangeably.


How do you calculate return on capital?

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.


What is the difference between rate of return and return on investment?

The rate of return is a percentage that shows how much an investment has gained or lost over a specific period, while the return on investment is a ratio that compares the profit of an investment to its cost.


What is difference between market capital and turnover?

Market capital is teh total turn over of the market in a perticular period .Where as Turn over is the single business activity"s investment and return .


What is the difference between dividends and capital gains and how do they impact an investor's overall return on investment?

Dividends are payments made by a company to its shareholders from its profits, while capital gains are the increase in the value of an investment over time. Dividends provide a regular income stream, while capital gains represent the profit made when selling an investment for more than its purchase price. Both dividends and capital gains can increase an investor's overall return on investment, but they impact it differently. Dividends provide immediate income, while capital gains increase the value of the investment, leading to a higher overall return when the investment is sold.


How is ROI or return on investment calculated?

Return on investment is calculated by subtracting investment capital from the return, taking into account inflation, taxation and the time frame involved.


What is the difference between the required rate of return and the expected rate of return in investment analysis?

The required rate of return is the minimum return an investor needs to justify the risk of an investment, while the expected rate of return is the return that an investor anticipates receiving based on their analysis of the investment's potential performance.