What does ROC mean?

ROC in finance stands for Return on Capital. It is a financial metric that measures the efficiency and profitability of a company's capital investments. It indicates how well a company is utilizing its capital to generate profits. The formula for calculating ROC is: (Net Income - Dividends) / (Total Debt + Equity). A higher ROC indicates that a company is generating a higher return on its capital investments, while a lower ROC may indicate inefficiency or poor management of capital. ROC is an important measure for investors and analysts to assess the financial health and performance of a company. It helps in comparing the performance of different companies within the same industry and evaluating the potential returns on investment. Overall, ROC is a key indicator of a company's financial strength and its ability to generate profits from its capital investments.