IN PLAIN ENGLISH
Profit earned on all the money tied up in a business, from both shareholders and lenders.
WHERE YOU MEET IT
ROIC (annual) and ROCE (annual) in a holding's Growth Analysis section, from the latest annual report.
WATCH OUT FOR
Return on equity can be flattered by borrowing; return on capital is harder to inflate that way.
EXPLAINED IN
Educational content only. It is not personal financial advice.