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Return on capital (ROC), or return on invested capital (ROIC), is a ratio used in finance, valuation and accounting, as a measure of the profitability and value-creating potential of companies relative to the amount of capital invested by shareholders and other debtholders. [1] It indicates how effective a company is at turning capital into ...
Return on invested capital (ROIC) is a financial metric that shows how well a company converts capital into profits. It measures the company's efficiency and effectiveness at allocating its ...
Buffett analyzes companies by calculating return on invested capital, or ROIC, in order to help determine whether a company has an economic moat -- the ability to earn returns on its money above ...
Rate of return (RoR), also known as 'rate of profit' or sometimes just 'return', is the ratio of money gained or lost (whether realized or unrealized) on an investment relative to the amount of money invested; Return on assets (RoA) Return on brand (ROB) Return on capital employed (ROCE) Return on capital (RoC) Return on equity (ROE) Return on ...
Invested Capital is the amount of money invested in the company by both stockholders and debtors. The ratio is expressed as a percent and one looks for a percent that approximates the level of growth that expected. In its simplest definition, this ratio measures the investment return that management is able to get for its capital. The higher ...
The more cash you get back for the amount you invested, the better your investment is. The same is true for the companies you invest in. Let's take a look at how investors can determine whether a ...
This means if reinvested, earning 1% return every month, the return over 12 months would compound to give a return of 12.7%. As another example, a two-year return of 10% converts to an annualized rate of return of 4.88% = ((1+0.1) (12/24) − 1), assuming reinvestment at the end of the first year. In other words, the geometric average return ...
Most importantly for investors, Cintas' long-tenured management has a lengthy history of delivering profitable growth, as evidenced by the company's high and rising return on invested capital ...