Industry has two primary resources, namely labour and capital. The productivity of labour determines the standard of living of the nation, but the productivity of capital determines whether it will be able to attract the investment which sooner or later will be required if economic growth is to be maintained. The starting point for assessing capital productivity is the ratio Profit : Capital Employed. Whatever one’s views may be on the morality of profit, it is a fact that the capital stock of the community can only increase as a result of profit. When comparing the performance of a number of companies, be it for investment, takeover or general appraisal purposes, the return on capital is a useful yardstick. Management begins with man, and no matter how sophisticated the techniques which may be used for the management of capital, these will be of little avail if the human side is neglected.