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rate of return vs return on invested capital

return on invested capital vs rate of return

rate of return and return on invested capital both are nouns.

Word NounAdjectiveVerbAdverb
rate of return Yes No No No
return on invested capital Yes No No No
As nouns, return on invested capital is a hyponym of rate of return; that is, return on invested capital is a word with a more specific, narrower meaning than rate of return:
  • rate of return: the amount returned per unit of time expressed as a percentage of the cost
  • return on invested capital: (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
Other hyponyms of rate of return include return on investment, ROI.
rate of return (noun) return on invested capital (noun)
the amount returned per unit of time expressed as a percentage of the cost (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
Difference between rate of return and return on invested capital

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