Invested capital turns is a key metric in evaluating a company's performance. It is calculated by dividing a company's annual revenue by its invested capital. This ratio measures how efficiently a company uses its capital to generate revenue. A higher ratio indicates that the company is using its capital more efficiently to generate sales. It is one of the drivers of economic earnings, along with ROIC, NOPAT margin, and the weighted average cost of capital (WACC).
Need help with which companies or projects to invest in? As a key driver of value in business, ROIC...
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