The drivers of economic earnings, such as Return on Invested Capital (ROIC), Net Operating Profit After Tax (NOPAT) margin, invested capital turns, and the Weighted Average Cost of Capital (WACC), can significantly impact future investment decisions. High ROIC and NOPAT margin indicate efficient use of capital and profitability, which can attract investors. On the other hand, high WACC indicates higher risk and cost of capital, which might deter investment. Invested capital turns, which measure how efficiently a company uses its capital, can also influence investment decisions.
Need help with which companies or projects to invest in? As a key driver of value in business, ROIC...
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