ROIC, or Return on Invested Capital, is a profitability ratio that measures how effectively a company uses its capital to generate profits. It's a key metric for investors because it provides insight into a company's efficiency at allocating its capital to profitable investments. A high ROIC can indicate that a company is generating a large amount of profit for each dollar of capital it invests, which can be a sign of a strong investment opportunity. Conversely, a low ROIC may suggest that a company is not using its capital effectively, which could be a red flag for investors.
Need help with which companies or projects to invest in? As a key driver of value in business, ROIC...
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