Return on Capital means the return produced by funds invested in the Company and shall be determined as Earnings from Continuing Operations, as defined in Section 2.a.(vi), divided by the Average Capital Employed. Average Capital Employed shall be derived by adding the Company's capital debt plus equity at the close of the last day of the year preceding the Performance Year, to the Company's capital debt plus equity at the close of the last day of the present Performance Year, with the resulting sum being divided by two. Capital debt is defined as the sum of borrowing by the Company due within one year and long-term borrowing, as designated on the Company's balance sheet. The resulting ratio shall be multiplied by One Hundred (100) in order to convert such to a percentage. Such percentage shall be calculated to the third place after the decimal point (i.e., xx.xxx%), and then rounded to the second place after the decimal point (i.e., xx.xx%).

Return on Capital means ** percent (**%), as such return level may be modified by Provider pursuant to the provisions of Section 7.1(f).

Examples of Return on Capital in a sentence

Illustratively, the parameters may include the Return on Capital Employed, Debt Service Coverage Ratio, Gap between the Internal Rate of Return and Cost of Funds and the amount of provision required in lieu of the diminution in the fair value of the restructured advance.
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They vest over three years and include two performance factors: (i) relative total shareholder return of Methanex shares versus a specific market index (the market performance factor) and (ii) three year average Return on Capital Employed (the non-market performance factor).
The tariff guidelines of 2005 prescribe a minimum capacity utilisation of 60% for claiming full Return on Capital Employed (ROCE).
The Gold on Lease scheme is also typically taken away in such a situation, leading to a dropping Return on Capital Employed, but the Return on Assets picture remains more or less the same.

More Definitions of Return on Capital

Return on Capital means consolidated net income of Olin plus after-tax interest expense and the after-tax effect of any special charge or gain and any cumulative effect of a change in accounting, divided by average consolidated total assets of Olin less total non-interest-bearing liabilities.

Return on Capital for a period shall mean net income divided by stockholders’ equity as determined by the Company’s independent auditors in accordance with GAAP and reported to the Committee.

Return on Capital for a period shall mean net income divided by stockholders’ equity.

Return on Capital means with respect to Construction Costs or other capital expenditures or the Fair Market Value Purchase Price, an amount equal to the product of (a) the Return on Capital Percentage and (b) the amount of such Construction Costs or other capital expenditures or the Fair Market Value Purchase Price, as the case may be (in $).

Return on Capital means Non-Pension Operating Income divided by Controllable Capital, each as defined in this Section. “Threshold” and “Maximum” shall mean the respective levels of performance outlined on the performance-based restricted stock unit information page on the website of the TPA for NCR.

Return on Capital means the cost of debt and equity on Rate Base which is included in the Revenue Requirement and as set out in Section 10.1.