ROIC, or Return on Invested Capital, plays a crucial role in investment valuation. It is a profitability ratio that measures the return that an investment generates for those who have provided capital, i.e., bondholders and stockholders. ROIC indicates how effective a company is at turning capital into profits. It is used by investors to see how much return a company is generating on its invested capital, which can be a strong indicator of future performance and potential for growth. A higher ROIC indicates a more efficiently run company.
Need help with which companies or projects to invest in? As a key driver of value in business, ROIC...
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