What does ROIC stand for?

Return on invested capital

An acronym that stands for the calculation used to determine a company's ability to allocate the capital it controls into profitable investments.

ROIC helps measure how well a company uses its money to generate returns. A company's return on invested capital is calculated as a percentage. It can be found by subtracting dividends from the net income and divide it by the total capital.


We have a high percentage ROIC but we aren't sure where the return is being generated

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Updated March 18, 2015

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