return on invested capital
noun
Simple meaning
The amount, expressed as a percentage, that is earned on a company's total capital calculated by dividing the total capital into earnings before interest.
Pronunciation
Say it like this:
rihturnahnihnvuhstuhdkapuhtuhlSay the bold part a little louder.
IPA pronunciation (US)
ɹɪˈtɝnɑnɪnvɛstədkæpətəl
This word is pronounced essentially the same in American and British English, so one transcription covers both.
IPA (International Phonetic Alphabet) is a standard way of writing speech sounds.
Definition
Everyday modern meanings first, grouped by part of speech.
noun
corporate finance
The amount, expressed as a percentage, that is earned on a company's total capital calculated by dividing the total capital into earnings before interest, taxes, or dividends are paid
Word Aura™
How this word commonly comes across.
This meaning: (corporate finance) the amount, expressed as a percentage, that is earned on a company's total capital calculated by dividing the total capital into earnings before interest, taxes, or dividends are paid
Used this way, return on invested capital is a specialist word that usually carries little praise or criticism of its own. This is a financial use: it has a settled meaning in accounting and business, where precision matters more than colour.
- Emotional tone
- Neutral
- Formality
- Specialist/technical
- Intensity
- Not strongly marked
- How common
- Specialized
- Connotation
- Clinical and technical
- Usage feel
- Technical and specialized
Where it naturally appears
- Finance/economics
- Business/professional
Usage note
In general conversation this sense usually needs explaining — outside its field, people reach for a plainer word.
Word Aura describes common impressions, not a measurement. Tone changes with sentence, speaker, relationship and situation.
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