Angel One - Share Market Trading and Stock Broking
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

Most Recent Quarter (MRQ)

Understand the meaning and definition of Most Recent Quarter (MRQ) in the context of stock market, trading, and investments.

MORE
Moving Negative Divergence

Understand the meaning and definition of Moving Negative Divergence in the context of stock market, trading, and investments.

MORE
Block Trade

Understand the meaning and definition of Block Trade in the context of stock market, trading, and investments.

MORE
Rights

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

MORE
Retractable Security

Understand the meaning and definition of Retractable Security 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