Return on Capital. Net income (or profit) before extraordinary items, interest expense and income taxes, divided by weighted average cost of capital (WACC). Shows how effectively a company is employing its capital (shareholders' equity and borrowings) to generate profits. Still widely used to evaluate financial institutions, but of limited use in other sectors.
"Cash flow remains strong and ROC employed moved up from 9.6% to 10.1% on a moving annual total (MAT) basis...."