Financial Glossary
What are you looking for?
-
Return On Invested Capital - ROIC
- A calculation used to assess a company's efficiency at allocating the capital under its control to profitable investments. The return on invested capital measure gives a sense of how well a company is using its money to generate returns. Comparing a company's return on capital (ROIC) with its cost of capital (WACC) reveals whether invested capital was used effectively.
The general equation for ROIC is as follows:
Also known as "return on capital"
Free investing newsletters