What is Return On Invested Capital (ROIC)?




Return on Invested Capital
Knowledge Center

Translate

Forum
6
Rujito
Manager

What is Return On Invested Capital (ROIC)?

In my understanding, ROIC = [Net Operating Profit - Adjusted Tax] / [Invested Capital].
ROIC is used to measure how well companis generate earnings from invested capital in their business. If ROIC is greater than WACC, it is creating value by investing in the project.

   

More on Return on Invested Capital:
Summary
Discussion Topics
🔥Valuation of a Business Based on its Assets (Invested Capital)
👀What is Return On Invested Capital (ROIC)?
Special Interest Group

Do you know a lot about Return on Invested Capital? Become our SIG Leader

Return on Invested Capital
Knowledge Center



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2023 12manage - The Executive Fast Track. V16.1 - Last updated: 6-2-2023. All names of their owners.