RORC

RORC, or Rate of Return on Capital, measures how effectively a company generates profit from its invested resources. It indicates the percentage of profit earned relative to the capital invested in the business, helping investors assess the company's efficiency and profitability. A higher RORC suggests better use of capital to generate earnings, while a lower rate may signal less efficient operations or higher risk. Essentially, RORC provides insight into how well a company turns invested money into profits, aiding in comparison across similar businesses or industries.