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Cash return on capital invested

Cash return on capital invested

Description

Cash return on capital invested (CROCI), also known as cash return on cash invested, is a ratio that compares the money (calculated as EBITDA measure) produced by a company to its’ capital invested. In short, it measures the money, earned with the money invested. Data to calculate this ratio is collected from the income statement and balance sheet.

Norms and limitations

There are no general norms for this ratio.

It is recommended to compare this ratio with ratios of companies working within the same industry.

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