Capital Yield Law and Legal Definition

Capital yield is a measure of profitability which is computed on the basis of, either total investment, or owner's equity.

The return on total investment, measures the profitability of the total assets available to a business, and indicates the efficiency with which management used the total available resources to earn income. It is computed by dividing total investment into income plus interest expense.

The return on owner's equity is the rate earned on resources provided by owners and measures the earnings accruing to the owners. It is computed by dividing owner's equity into income.

Capital yield is also known as rate of return, return on assets employed, return on capital, or return on equity.