ROIC

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.

Example

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

Related Slang

ROIReturn on investment
EBTEarnings before taxes
ISOIncentive stock option
NSONon-qualified stock option
NQSONon-qualified stock option
CEOChief executive officer
CFOChief financial officer
P/EPrice-to-Earnings Ratio
EPSEarnings per share

Categories

Financial Terms
Updated March 18, 2015

ROIC definition by Slang.net - The Slang Dictionary

This page explains what the acronym "ROIC" means. The definition, example, and related terms listed above have been manually compiled and written by the Slang.net team.

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