Return on invested capital
What is Return on invested capital (ROIC)?
ROIC is calculated as Net Income divided by Total Invested capital and multiplied by 100. Note: if the denominator is negative, the field value will be empty.
Net income / Average total invested capital for two periods
What does ROIC mean?
It shows how well the company uses its money to make a profit. It can also be used as a way to measure the effectiveness of a company’s management team including their ability to convert capital into profitable investments.