Words / R / Business

return on invested capital

noun

C1CEFR level
65/100Rarity: rare
TechnicalRegister

A profitability measure showing the after-tax operating return a company earns on the total capital deployed in its business.

A business that consistently earns a return on invested capital above its cost of capital is genuinely creating value.

Similar: ROIC

Topic: Corporate finance in Business English

Rarity runs from 0 (a word everyone knows) to 100 (almost never seen outside specialist or literary writing). Level is the word's real difficulty on the CEFR scale, from A1 to C2.

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More business words: Corporate finance