Return on Capital
How much operating profit you generate for every dollar invested in your business operations. Combines profitability (Operating Profit %) with efficiency (Sales to Asset Ratio). Higher means you're generating more return from your capital.
- How it's worked out
- (Operating Profit / Net Operating Assets) × 100 = Operating Profit % × Sales to Asset Ratio
- Which way is better
- Higher is betterHigher is better for cash.
Written by Mandy Walker, founder of Focus on Cash. Updated October 2026. This explanation comes from the glossary inside Focus on Cash, so it matches the words you see in the app.
Related measures
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