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Return On Investment Capital - ROIC
What does it mean?
A calculation used to determine the quality of a company. The general definition for ROIC is as follows:
In Other Words...
Total capital includes long term debt and common and preferred shares. Since some companies receive income from other sources, or have other confliciting items in their net income, NOPAT will be used instead.
This is always calculated as a percent. Invested capital can be in buildings, projects, machinery, other companies... etc.
Related Links
A Look at ROIC - A 7 part series looking at return on invested capital.
Related Terms
Common Stock | Long Term Debt | Net Income | Preferred Stock
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A | B |
C | D |
E | F |
G | H |
I | J |
K | L |
M | N |
O | P |
Q | R |
S | T |
U | V |
W | X |
Y | Z
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