A percentage that shows how much profit an investment makes for the people who provide the capital. It reflects how well a company uses its capital to generate earnings.
The formula for Return on Capital is:
Return on Capital = ((TTM Net Income + TTM Minority Interest + TTM Interest Expense * (1 - (TTM Effective Tax Rate / 100))) / Average of Total Capital) * 100
Where:
- TTM Net Income (TM002,
ttm_net_inc) is the operating income minus taxes for the trailing twelve months.
- TTM Minority Interest is TM003,
ttm_minority_int
- TTM Interest Expense is TM004,
ttm_int_exp
- TTM Effective Tax Rate is TM005,
ttm_eff_tax_rt
- Total Capital is BS075,
bs_tot_cap