Return on Capital
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Analysis and Interpretation of Financial Statements for Decision Making
MS: Pulangan atas Modal · EN: Return on Capital · ZH: 资本回报率
Meaning
Return on capital measures the net profit earned relative to the capital the owner has invested. Its formula is (net profit ÷ capital) × 100. It shows how well the owner's capital is generating a return.
Example
Puan Aisyah invests capital of RM100,000 in Kedai Jahit Rapi and earns a net profit of RM15,000. The return on capital is (15,000 ÷ 100,000) × 100 = 15%.
Source: DSKP KSSM Prinsip Perakaunan Tingkatan 5