Relying solely on Return on Invested Capital (ROIC) for investment decisions can be risky because it doesn't take into account other important factors such as market conditions, company's financial health, industry trends, and management quality. ROIC is a measure of a company's efficiency in using its capital to generate profits, but it doesn't provide a complete picture of a company's overall performance or potential for future growth. It's always advisable to use a combination of financial metrics and qualitative factors when making 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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