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The phrase "adjusted return on capital" is correct and usable in written English.
It can be used in financial contexts to refer to a measure of profitability that accounts for various adjustments to capital.
Example: "The company's adjusted return on capital improved significantly after the restructuring efforts."
Alternatives: "modified return on capital" or "refined return on capital".
Exact(1)
(Dynamic RAROC) The Risk Adjusted Return On Capital (RAROC) is a popular scale invariant measure of performance; see (Cherny and Madan (Cherny and Madan 2009)) for static RAROC and (Bielecki et al. (Bielecki et al. 2014b)) for its extension to the dynamic setup.
Similar(59)
In the late 1970s, the US Bankers Trust developed the concept of risk-adjusted return on capital for the purpose of obtaining a measure of profitability adjusted for risk.
Another pillar in economic capital allocation procedures is risk-adjusted return on capital (RAROC).
They can range from RAROC (risk-adjusted return on capital) to NPS (Net Promoter Score).
Despite this it generates lease-adjusted return on capital employed of more than 20% and stores pay back the capex outlay in around a year.
Perhaps the most well-known RAP measure is RAROC (risk-adjusted return on capital), which can generally be defined as the ratio between the profit and CaR for a given business area/unit.
"The firm is resizing its cost base and head count to match current opportunities in the market place, while reallocating resources to those businesses that provide an attractive risk-adjusted return on capital," a spokesman, Mark Lake, said.
Some institutions have started using quantitative methods like risk-adjusted return on capital to determine the ability of a business borrower to generate enough cash to repay its debts.
Median market and risk adjusted returns to pre- (post-) buyout capital are estimated at 72.5% (40.9%), even including the cases of distress.
Venture capital (funds) as an asset class have failed to deliver compelling risk adjusted returns.
Yet average industrial profit margins and the rate of return on capital of listed firms have been fairly steady over the past decade after adjusting for the cycle.
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