Return on capital
Return on capital (RoC) measures how much money a company makes from a certain investment. It is usually calculated by dividing the profit the company makes from the investment by the amount of money the company has invested (capital). For example, if a company invested $100 and made a profit of $20, then the return on capital would be 20%. RoC is an important measure for any business because it shows how efficient the company is with its money, and how much it is making on the investments it has made.
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