Return on Capital

Quickly determine the efficiency of your capital allocation.

Capital Inputs

Enter your financial data below.

Pre-Tax Business Profit

Invested Capital Components

Cash

Accounts Receivable

Accounts Payable

Inventory

Fixed Assets

What is Invested Capital?

Invested Capital is the total amount of money used to fund the business. We calculate it using values from your balance sheet. Debt is not included.

Cash + AR - AP + Inventory + Fixed Assets

Calculated Return on Capital

This reflects how efficiently your business uses capital to generate profit.

75.0%

Return on Capital

Total Invested Capital:$200,000

Pre-Tax Profit:$150,000

Healthy

Minimum Target: 75%