A declining ROIC (Return on Invested Capital) for the Energy sector could imply several things. Firstly, it could indicate that the sector is not generating enough return on the capital it has invested, which could be due to a variety of factors such as increased production costs, lower demand, or increased competition. This could potentially lead to lower profits and lower dividends for shareholders. Secondly, a declining ROIC could also suggest that the sector is investing in projects or assets that are not generating sufficient returns, which could impact the long-term sustainability of the sector. Lastly, it could also reflect broader economic conditions such as a downturn in the economy or a fall in energy prices.
Need help with which companies or projects to invest in? As a key driver of value in business, ROIC...
Download model