Return on invested capital
We have a high percentage ROIC but we aren't sure where the return is being generated.
|ROI||Return on investment|
|EBT||Earnings before taxes|
|ISO||Incentive stock option|
|NSO||Non-qualified stock option|
|NQSO||Non-qualified stock option|
|CEO||Chief executive officer|
|CFO||Chief financial officer|
|EPS||Earnings per share|
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.