Skip to main content
Stocks

Return on Capital (return on invested capital)

When discussing a company's financial health, we often refer to its after-tax income, which is the earnings remaining after all taxes have been paid. This can be calculated by taking the total income over the past 12 months and subtracting any tax payments. We then divide this figure by the sum of the company's shareholder's equity, long-term debt, and other long-term liabilities. This calculation gives us a measure of the company's profitability and leverage.

Related terms

Private Placement

Understand the meaning and definition of Private Placement in the context of stock market, trading, and investments.

MORE
Stop Order (stop loss)

Understand the meaning and definition of Stop Order (stop loss) in the context of stock market, trading, and investments.

MORE
Good-Till-Date (GTD) Order

Understand the meaning and definition of Good-Till-Date (GTD) Order in the context of stock market, trading, and investments.

MORE
Gross Profit

Understand the meaning and definition of Gross Profit in the context of stock market, trading, and investments.

MORE
Broker or Brokerage Firm

Understand the meaning and definition of Broker or Brokerage Firm in the context of stock market, trading, and investments.

MORE
Extraordinary Items

Understand the meaning and definition of Extraordinary Items in the context of stock market, trading, and investments.

MORE

Open Free Demat Account!

Join our 3.8 Cr+ happy customers

+91
Explore other categories
Enjoy Zero Brokerage on Equity Delivery
10 Cr+DOWNLOADS

Enjoy Zero Brokerage On Stock Investments

Get the link to download the App

Scan this QR code to download the app
Get it on Google PlayDownload on the App Store