A high Return on Invested Capital (ROIC) implies that a company is efficiently using its capital to generate profits. It's a sign of good management and a profitable investment. On the other hand, a low ROIC indicates that a company is not efficiently using its capital, which could be a sign of poor management or a less profitable investment. However, it's important to compare ROIC among companies in the same industry, as capital requirements can vary.
Need help with which companies or projects to invest in? As a key driver of value in business, ROIC...
Download model