Term of the Day: Return On Invested Capital - ROIC

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	INVESTOPEDIA Term Of The Day September 19, 2015 Return On Invested Capital - ROIC A calculation used to assess a company's efficiency at allocating the capital under its control to profitable investments. Return on invested capital gives a sense of how well a company is using its money to generate returns. Comparing a company's return on capital (ROIC) with its weighted average cost of capital (WACC) reveals whether invested capital is being used effectively. Breaking It Down: Invested capital, the value in the denominator, is the sum of a company's debt and equity. There are a number of ways to calculate... Read More Related to "Return On Invested Capital - ROIC" Find Quality Investments With ROIC Return on invested capital, or ROIC, is arguably one of the most reliable performance metrics for... Read More Find Investment Quality In The Income Statement To a large degree, it is the quality and growth of a company's earnings that drive its stock price. Therefore, it is imperative that investors... Read More Valuing Firms Using Present Value Of Free Cash Flows Decisions to invest can be made based on simple analysis such as finding a company you like with a product you think... Read More Recently Added Definitions Liquidity Liquidity describes the degree to which an asset or security can be quickly bought or sold in... Read More Remittance A remittance most commonly refers to the funds an expatriate sends to their country of origin via... Read More Related Definitions Preferred Stock Financial Buyer Common Stock Long-Term Debt Net Income - NI Past Terms of the Day Profit Margin Investment Banker Operating Margin Return On Investment - ROI Point & Figure Chart You are currently subscribed as: mondemand.forex@blogger.com Unsubscribe | Unsubscribe From All | Manage Profile Investopedia US, A Division of IAC. Copyright © 2015, Investopedia, LLC. All Rights Reserved Follow Us: