Return on Capital, also known as Return On Invested Capital (ROIC) is defined as

Net Income / Invested Capital 

usually expressed as a percentage. When the ROIC is greater than the cost of capital (usually measured as weighted average cost of capital), the company is creating value. When it is less than the cost of capital, value is destroyed.

See also

• Cash Flow Return on Investment (CFROI)
• Cash Return on Gross Investment (CROGI)
• Profitability
• Return On Assets (ROA)
• Return On Equity (ROE)
• Return on Capital Employed (ROCE)
• Return on Invested Capital (ROIC)
• Return On Investment (ROI)
• Return On Net Assets (RONA)
• Return On Revenue (ROR)
• Return on Sales (ROS)
• Risk Adjusted Return on Capital (RAROC)