Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 5 terms
Operating profit divided by the capital invested in the business.
Recalculate it including capital work in progress. If most of the return disappears, the distortion was doing the work.
A tilt towards high return on capital, low debt and stable earnings.
Works well through most conditions and lags badly in sharp recoveries from a bottom.
Return on capital excluding goodwill and intangibles.
A legitimate operating measure that flatters serial acquirers. A management team preferring it is telling you something.
Return on capital employed — operating profit as a percentage of debt plus equity.
The honest version of ROE. It cannot be manufactured with leverage.
How much capital a business must deploy to generate, and to grow, a rupee of revenue.
Return on capital multiplied by retention is how fast a company can grow without diluting you. Capital-light businesses compound faster because growth does not consume the profit.