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Return on Capital
ROC. A measure of how effectively a company uses the Money (borrowed or owned) invested in ITS operations. Return on Invested Capital is equal to the following: Net operating income after taxes / [total assets minus Cash and investments (except in strategic alliances) minus non-interest-bearing liabilities]. If the Return on Invested Capital of a company exceeds ITS WACC, then the company created value. If the Return on Invested Capital is less than the WACC, then the company destroyed value.
Related Terms: 26
Asset , Borrow , Bear , Capital , Cash , Cap , GIC , Interest-bearing , Invested capital , Interest , Inc. , ITS , Low , Money , Net , Net Operating Income , Owe , Own , Return on Invested Capital , Rating , Return , Ratio , Ring , Strategic alliance , Total assets , Tax
Semi Related Terms: 911 CLICK HERE TO VIEW
10-Q ,
52-week low ,
Active asset ,
Alternative assets ,
Asset ,
Asset/equity ratio ,
Available assets ,
Average accounting return ,
Adjustable rate ,
Asset management account ,
Accreted value ,
Accrual of discount ,
Accrued interest ,
After-tax basis ,
Amortization of premium ,
Amortized value ,
Asset-backed security ,
Asset swap ,
At par ,
All or any part ,
At best ,
At call ,
Active money ,
Accumulated earnings tax ,
Adjustable rate preferred stock ,
All-risks coverage ,
At risk ,
Annual return ,
Asset acquisition ,
Asset class ,
Asset financing ,
Add-on service ,
Abstract of title ,
Action to quiet title ,
As is ,
Assignment to creditors ,
Attorney in fact ,
Adjustable Rate Mortgage ,
Advance rate ,
After acquired clause ,
After-acquired collateral ,
Annual Percentage Rate ,
Applicable federal rate ,
Asset-based finance ,
Asset-based lending ,
Asset conversion loan ,
Assignment of mortgage ,
A shares ,
Asset allocation fund ,
Assets under management ,
Asset turnover ,
Automatic investment plan ,
Average price per share ,
At the money ,
Absorption rate ,
After-tax contributions ,
Across the board ,
Additional paid-in capital ,
Abusive tax shelter ,
After-tax ,
Alternative Minimum Tax ,
Amended return ,
Assessed value ,
After-hours trading ,
Against the box ,
At the bell ,
At the close ,
At the figure ,
At the full ,
At the market ,
At the opening order ,
Automated Pricing and Reporting System ,
Away from the market ,
Below the line ,
Books of final entry ,
Books of original entry ,
Book value per share ,
Burn rate ,
Bank holding company ,
Banking Act of 1933 ,
Barren money ,
Benchmark interest rate ,
Bid-to-cover ratio ,
Bureau of Public Debt ,
Brought over the wall ,
Buying on margin ,
Buy minus ,
Buy minus order ,
Buy on close ,
Buy on opening ,
Buy the book ,
Broad money ,
Basic earnings per share ,
Balance of payments ,
Bank Rate ,
Base interest rate ,
Bear market ,
Board of Governors ,
Borrowed reserves ,
Breaking the syndicate ,
Bill of exchange ,
Bill of sale ,
Breach of trust ,
By the book ,
Base rate ,
Blended rate ,
Borrow ,
Broker loan rate ,
Breakup value ,
B shares ,
Bear straddle ,
Buy and write ,
Borrowed stock ,
Balanced investment strategy ,
Back taxes ,
Before-tax income ,
Break-even tax rate ,
Breadth-of-market theory ,
Bear ,
Beat the gun ,
Capital ,
Capital appreciation ,
Capital asset ,
Capital efficiency ,
Capital expenditure ,
Capital growth ,
Capital investment ,
Capitalized interest ,
Capital liability ,
Capital loss ,
Capital resource ,
Cash ,
Cash asset ratio ,
Cash basis ,
Cash budget ,
Cash control ,
Cash conversion cycle ,
Cash cycle ,
Cash earnings ,
Cash equivalence ,
Cash journal ,
Cash ratio ,
Collection ratio ,
Cost Of Goods Sold ,
Cost of sales ,
Current liabilities ,
Cash reserves ,
Central assets account ,
Compound interest ,
Current income ,
Cap ,
Capital market ,
Capital structure ,
Cash equivalents ,
Certificate of Participation ,
Committee on Uniform Securities Identification Procedures ,
Conversion ratio ,
Conversion value ,
Coupon rate ,
Current market value ,
Current production rate ,
Call money rate ,
Cash account ,
Code of procedure ,
Cash dividend ,
Capitalization of income ,
Capitalization rate ,
Cap rate ,
Capital account ,
Capital consumption allowance ,
Capital formation ,
Civilian unemployment rate ,
Cost of Living Adjustment ,
Cost-of-living index ,
Council of Economic Advisers ,
Cash and carry trade ,
Cash commodity ,
Cash market ,
Cash price ,
Cash settlement ,
Chasing the market ,
Cheapest to deliver ,
Chicago Board of Trade ,
Cash surrender value ,
Cash value ,
Cash value life insurance policy ,
Cash withdrawal ,
Cost-of-living rider ,
Capital budget ,
Capital gains distribution ,
Certificate of stock ,
Cost of carry ,
Certificate of title ,
Cancellation of debt ,
Cash advance ,
Cash collateral ,
Cash credit ,
Cash-out refinancing ,
Certificate of Claim ,
Consumer interest ,
Cost of debt capital ,
Cost of funds ,
Controlled company ,
Capital appreciation fund ,
Closed-end investment company ,
C shares ,
Call ratio backspread ,
Class of options ,
Close to the money ,
Cash Against Documents ,
Certificate of Occupancy ,
Cloud on title ,
Cash-balance plan ,
Cash or Deferred Arrangement ,
Calendar effect ,
Capital Asset Pricing Model ,
Capital commitment ,
Cash sale ,
Class A Shares ,
Class B Shares ,
Contributed capital ,
Crash of 1929 ,
Crash of 1987 ,
Capital gains tax ,
Capital loss carryover ,
Child and dependent care credit ,
Consolidated tax return ,
Coefficient of determination ,
Cup and handle ,
Cash buying ,
Cash delivery ,
Certificate of delivery ,
Close a position ,
Cornering the market ,
Curbs in ,
Corporate venture capital ,
Deferred tax ,
Deficit net worth ,
Deposit in transit ,
Date of issue ,
Date of payment ,
Debt capital ,
Deferred interest bond ,
Division of Enforcement ,
Division of Investment Management ,
Division of Market Regulation ,
Date of record ,
Dividend in arrears ,
Dividend payout ratio ,
Dividend rate ,
Desk (the) ,
Diminishing return ,
Discount rate ,
Division of labor ,
Discounted Cash Flow Analysis ,
De-escalation clause ,
De facto ,
Doing business as ,
Durable Power of Attorney ,
Date of maturity ,
Debtor in possession ,
Debtor-in-possession financing ,
Deed of Release ,
Deed of Trust ,
Discharge of bankruptcy ,
Discharge of lien ,
Double net lease ,
Due-on-sale clause ,
Deep in the money ,
Deep out of the money ,
Deed of Surrender ,
Department of Housing and Urban Development ,
Defensive investment strategy ,
Dogs of the Dow ,
Disposable income ,
Daily low ,
Depth of market ,
Earning asset ,
Economic value ,
Effective debt ,
Efficiency ratio ,
Effective annual interest rate ,
Eurodollar certificate of deposit ,
Exact interest ,
Escrowed to maturity ,
Ex-legal ,
Either-or order ,
Exchange rate ,
Extended broad money ,
Effective par ,
Economic growth rate ,
E-mini ,
Exchange of spot ,
Exchange versus cash ,
Ex-pit transaction ,
Effective date ,
Experience rating ,
Effective tax rate ,
Ex-all ,
Exchange ratio ,
Expected return ,
Explicit interest ,
Exercise ratio ,
Ex-warrants ,
Estate tax ,
Employee Retirement Income Security Act of 1974 ,
Exclusion ratio ,
Equity capital ,
Ex-rights ,
Ex-rights date ,
Earned income tax credit ,
Estimated tax ,
Excess profits tax ,
Excise tax ,
Financial asset ,
Financial capital ,
First In First Out ,
Fixed asset ,
Fixed-charge coverage ratio ,
Form 10-Q ,
Federal Savings and Loan Association ,
Fixed income ,
Fixed income equivalent ,
Fixed-income arbitrage ,
Flight to quality ,
Floating-rate bond ,
Flow of funds ,
Fill or kill ,
Front-ending an order ,
Fiat money ,
Floating exchange rate ,
Foreign exchange rate ,
Forward exchange rate ,
Forward P/E ,
Fully diluted earnings per share ,
Factors of production ,
Favorable balance of trade ,
Federal Reserve Discount Rate ,
Foreign direct investment ,
Fair market value ,
Form S-1 ,
Friends and family offering ,
Finance company ,
Fixed rate ,
Fixed-rate loan ,
Fixed-Rate Mortgage ,
Floating rate ,
Forward interest rate ,
Forward Rate Agreement ,
Full faith and credit ,
Family of funds ,
Fund of funds ,
Free and clear ,
Fixed investment trust ,
Free right of exchange ,
Federal Tax Identification Number ,
Federal tax lien ,
Flat tax ,
Franchise tax ,
Fair value ,
Gross income ,
GIC ,
Guaranteed Investment Contract ,
G-7 ,
General Agreement on Tariffs and Trade ,
G-8 ,
Growth and income fund ,
Gather in the stops ,
Gift tax ,
Hidden asset ,
Hart-Scott-Rodino Act of 1976 ,
Hit the bid ,
House of issue ,
Hedge ratio ,
Health Insurance Portability and Accountability Act ,
Holding company ,
Holder in due course ,
High-ratio mortgage ,
Home equity line of credit ,
Hidden tax ,
Head and shoulders ,
High-low index ,
Hammering the market ,
Held at the opening ,
Holding the market ,
Imputed value ,
Inactive asset ,
Income statement ,
Intangible asset ,
Investment flows ,
Interest-bearing ,
Income bond ,
In escrow ,
Interest rate collar ,
Interest rate risk ,
Interest rate swap ,
Intrinsic value ,
Invested capital ,
Investment bill ,
Investment-grade bond ,
Investment letter ,
Investment security ,
Investment value ,
In-house ,
Investment Advisor Act of 1940 ,
Investment bank ,
Investment banker ,
Investment Bankers Association ,
Investment banking ,
Investment banking group ,
Investment Company Act of 1940 ,
Income coverage ,
Income stock ,
In line ,
Income distribution ,
Inflation rate ,
Investment multiplier ,
Interest rate futures ,
Interbank Rate ,
Insurable interest ,
Insider Trading sanctions Act of 1984 ,
Interest ,
Interest expense ,
Internal Rate of Return ,
Indication of interest ,
Inc. ,
In intestacy ,
Inter vivos trust ,
Imputed interest ,
Interest deduction ,
Interest-only loan ,
Interest rate ,
Interest rate cap ,
Interest rate ceiling ,
Interest rate floor ,
In play ,
In-process research and development ,
Income fund ,
Income risk ,
Investment company ,
Investment fund ,
Investment objective ,
Investment policy ,
Investment trust ,
Interest rate option ,
I/O strip ,
Inchoate interest ,
Income property ,
Inheritance tax ,
Interest-only strip ,
Investment property ,
Income replacement ratio ,
In-service withdrawal ,
Investment philosophy ,
Income exclusion rule ,
Individual tax return ,
Imbalance of orders ,
In and out ,
In sympathy ,
In the tank ,
ITS ,
Invisible venture capital ,
Jointly and severally ,
Jumping the gun ,
Joint and several liability ,
Joint and survivor annuity ,
January Effect ,
Joint Stock Company ,
Joint return ,
Joint tax return ,
Last In First Out ,
Liquidation value ,
Liquidity ratio ,
Lender of last resort ,
Law of one price ,
Lending at a rate ,
Limit-on-close order ,
Long Market Value ,
Lawful money ,
Law of demand ,
Law of supply ,
London International Financial Futures and Options Exchange ,
Limited company ,
London Inter-Bank Offer Rate ,
Letter of comment ,
Legal assets ,
Lifetime cap ,
Line of credit ,
Loan-to-cost ,
Loan-to-value ,
Loan value ,
Loan-value ratio ,
Lock-in ,
Load-adjusted return ,
Large cap ,
Leading the market ,
Limited Liability Company ,
Locked in ,
Long-term gain or loss ,
Luxury tax ,
Level I quotes ,
Low ,
Modified cash basis ,
Money center bank ,
Money order ,
Mutual company ,
Maturity value ,
Minus yield ,
Municipal investment trust ,
Make a market ,
Margin rate ,
Market if touched order ,
Market on close order ,
Mark-to-market ,
Money management ,
Medium of exchange ,
Money ,
Marginal propensity to consume ,
Market rate ,
Money at call ,
Money factor ,
Mortgage interest deduction ,
Mortgage rate ,
Management company ,
Morningstar Rating System ,
Market cap ,
Medium-cap ,
Micro cap ,
Mid cap ,
Mill rate ,
Mean return ,
Market return ,
Market-value weighted index ,
Minus tick ,
Money flow ,
Net ,
Net book value ,
Net current assets ,
Net income ,
Net income multiplier ,
Net interest margin ,
Net investment ,
Net margin ,
Net Operating Income ,
Net operating margin ,
Net profit ,
Net profit margin ,
Net quick assets ,
Net sales ,
Net surplus ,
Net tangible assets ,
Non-cash expense ,
Noncurrent asset ,
Noncurrent liabilities ,
Non-financial asset ,
Near money ,
Negotiable certificate of deposit ,
Negotiable Order of Withdrawal ,
Nominal rate ,
Non-callable ,
Non-callable bond ,
Non-interest-bearing note ,
Notice of Sale ,
National Association of Securities Dealers ,
National Association of Securities Dealers Automated Quotations system ,
Net capital ratio ,
No limit order ,
No quote ,
Nominal asset ,
Non-cumulative preferred ,
Non-equity option ,
No-Fault ,
Net Asset Value ,
Net estate ,
No-Action Letter ,
Non-compete agreement ,
Non-disclosure agreement ,
Null and void ,
No-lien affidavit ,
Non-conforming loan ,
Nonperforming asset ,
Non-revolving credit card ,
Notice of Default ,
No-load ,
Non-resident alien tax ,
Non-qualified stock option ,
Non-statutory stock option ,
National Association of Real Estate Investment Trusts ,
Net lease ,
Non-investment property ,
Non-contributory plan ,
Non-insured plan ,
Non-qualified retirement plan ,
Nasdaq Small Cap Market ,
No-load stock ,
Nominal capital ,
Nominal value ,
Net change ,
Net position ,
Net transaction ,
Net volume ,
No book ,
Off the books ,
One time charge ,
Operating cash flows ,
Operating costs ,
Operating cycle ,
Operating leverage ,
Operating margin ,
Other current assets ,
Other long term liabilities ,
Overhead ratio ,
Office of Thrift Supervision ,
Ordinary interest ,
Out-of-favor ,
Over-the-Counter ,
On-floor order ,
On margin ,
Or better ,
Operating profit margin ,
Other income ,
Open market operation ,
Operating rate ,
Open interest ,
Offshore company ,
One-share one-vote rule ,
Opinion of title ,
On account ,
On-the-spot loan ,
Owe ,
Open-end management company ,
Option income fund ,
Out of the money ,
Operating lease ,
Own ,
Old age, survivors, and disability insurance ,
Ordinary income ,
On-balance volume ,
October Effect ,
Odd lot buy/sell ratio ,
On close ,
One man picture ,
On open ,
On the opening ,
Permanent capital ,
Petty cash ,
Pooling of interests ,
Pre-tax profit margin ,
Profit and loss statement ,
Participating GIC ,
Pass-through coupon rate ,
Payment-in-kind security ,
Phantom income ,
Premium over bond value ,
Premium over conversion value ,
Price Value of a Basis Point ,
Payout ratio ,
P&L ,
Primary earnings per share ,
Provision for income taxes ,
Public company ,
Per stirpes ,
Power of Attorney ,
Personal interest ,
Prepaid interest ,
Prime rate ,
Prioritization of debt ,
Purchase-money mortgage ,
Private Market Value ,
Prime rate fund ,
Premium income ,
Passive income ,
Property tax ,
Plan asset ,
Paid-in capital ,
Paid-in surplus ,
Private company ,
Private Investment in Public Equity ,
Perfect capital market ,
Preservation of capital ,
Put ratio backspread ,
Progressive tax ,
Proportional tax ,
Point-and-figure chart ,
Profit ratio ,
Painting the tape ,
Put/call ratio ,
Quick assets ,
Quick turn ,
Real asset ,
Replacement value ,
Reports and Records ,
Residual value ,
Retention rate ,
Return of capital ,
Return on Capital ,
Return on Invested Capital ,
Return on Total Assets ,
Risk adjusted return ,
Run rate ,
Real interest rate ,
Regulation Q ,
Reserve ratio ,
Rate covenant ,
Rating ,
Rating service ,
Real Estate Mortgage Investment Conduit ,
Return ,
Reading the tape ,
Regulation D ,
Regulation G ,
Regulation T ,
Regulation U ,
Round of funding ,
Rules of Fair Practice ,
Rate of exchange ,
Reciprocal of European terms ,
Regulated investment company ,
Real economic growth rate ,
Round turn ,
Ratio ,
Registered Company ,
Regulation A ,
Right of first refusal ,
Right of rescission ,
Right to Know ,
Rate-improvement ,
Rate lock ,
Real estate owned ,
Renegotiable rate ,
Revolving line of credit ,
Right of recourse ,
Rule of 78 ,
Ratio calendar combination ,
Ratio calendar spread ,
Ratio spread ,
Ratio write ,
Right of redemption ,
Retirement Equity Act of 1984 ,
Risk/return trade-off ,
Regressive tax ,
Ratio analysis ,
Return on Capital Employed ,
ROC ,
Rate of return ,
Real rate of return ,
Ring ,
Risk capital ,
Salvage value ,
Selling, General and Administrative Expenses ,
SG&A ,
Stranded asset ,
Savings and Loan ,
Sight letter of credit ,
Simple interest ,
S&L ,
Securities and Exchange Commission ,
Series EE bond ,
Split rating ,
Spot rate ,
Straight value ,
Segregation of securities ,
Sell the book ,
Savings rate ,
Standard of living ,
Swap rate ,
Second-to-die insurance ,
Stock life insurance company ,
Surrender value ,
Short interest ,
Short interest ratio ,
Statute of Limitations ,
Statutory investment ,
Sale and leaseback ,
Satisfaction of debt ,
Security interest ,
Start rate ,
Staggered board of directors ,
Strategic alliance ,
Strategic buyout ,
Systematic investment plan ,
Selling the spread ,
Short market value ,
Special use property ,
Social Security Tax ,
Shareholder value ,
Small cap ,
Selling short against the box ,
Shorting against the box ,
Sales tax ,
S Corporation ,
Self-employment tax ,
Separate tax returns ,
Short-term gain or loss ,
Sin tax ,
Standard mileage rate ,
Subchapter M ,
Subchapter S Corporation ,
Schedule C ,
Securities Act of 1933 ,
Securities Acts Amendments of 1975 ,
Securities Exchange Act of 1934 ,
Seek a market ,
Smart money ,
S&P phenomenon ,
Stop and reverse ,
Seed capital ,
Tangible asset ,
Tangible net worth ,
Times interest earned ,
Total assets ,
Total cost ,
Tax anticipation note ,
Tax-exempt bond ,
Tax renevue anticipation note ,
T-Bill ,
Term to maturity ,
Take a position ,
Total return ,
Trailing P/E ,
Tight money ,
Tax haven ,
Tax ,
Tax schedule ,
Total asset turnover ,
Total return index ,
Tenancy by the entirety ,
Trust company ,
Teaser rate ,
TED spread ,
Triple net lease ,
Truth in Lending ,
Tax-free bond fund ,
Tax-managed fund ,
Theoretical value ,
Tax lien ,
Tax roll ,
Tenancy at will ,
Title company ,
Transfer tax ,
Tax deferral ,
Tax-deferred ,
The Street ,
Timing the market ,
Taxable income ,
Tax-advantaged ,
Tax audit ,
Tax base ,
Tax basis ,
Tax bracket ,
Tax-deductible ,
Tax deduction ,
Tax-efficient ,
Tax evasion ,
Tax-exempt ,
Tax identification number ,
Tax loss carryback ,
Tax loss carryforward ,
Tax lot ,
Taxpayer Relief Act of 1997 ,
Tax planning ,
Tax preference item ,
Tax Reform Act of 1986 ,
Tax Reform Act of 1993 ,
Tax return ,
Tax sale ,
Tax shelter ,
Tax shield ,
Tax swap ,
Tax tables ,
Take a bath ,
U.S. Government Agency Security ,
U.S. Savings Bond ,
U.S. Treasury ,
U.S. Treasury Bill ,
U.S. Treasury Bond ,
U.S. Treasury Note ,
U.S. Treasury Securities ,
Unlimited tax bond ,
Unemployment rate ,
Unearned interest ,
Unit Investment Trust ,
Unified Tax Credit ,
Unit of trade ,
Unit of trading ,
Variable rate ,
Value stock ,
Variable ratio write ,
Value averaging ,
Value investing ,
Variable ratio plan ,
Value Added Tax ,
Venture capital ,
Venture capital limited partnership ,
Working capital ,
Written-down value ,
With interest ,
Waiver of premium ,
Working capital loan ,
Widow-and-orphan stock ,
W-2 Form ,
W formation ,
When, as, and if issued ,
X or XD ,
Year-To-Date ,
Yield to call ,
Yield to maturity ,
Yield to worst ,
Y shares ,
Zero-investment portfolio ,
Zero-minus tick