Return on capital

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wesley.p...@gmail.com

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Sep 18, 2021, 2:12:39 PM9/18/21

to noc21-mg7...@nptel.iitm.ac.in

Hi,

I have a question about what is happening in this video at 00:17:58 -

http://www.youtube.com/watch?v=W5V2IqSD5vc#t=1078s.

Can we say, return on capital = EBITDA/Total capital employed.

Thanks!

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NOC21 MG75

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Sep 20, 2021, 1:13:00 AM9/20/21

to Discussion forum for Financial Accounting, wesley.p...@gmail.com

Dear participant

In Return on Capital, we can consider EBIT because it will reflect in true interpretation but not the EBITDA.