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Financial statements
Also called: ROIC, Return on invested capital
ROIC (return on invested capital) is a company's after-tax operating profit (NOPAT) divided by the capital invested in it — equity plus debt minus cash. It shows how well the business turns the money tied up in it into profit.
ROIC = NOPAT ÷ (Equity + Debt − Cash) × 100
ROIC (return on invested capital) is a company's after-tax operating profit (NOPAT) divided by the capital invested in it — equity plus debt minus cash. It shows how well the business turns the money tied up in it into profit.
ROIC = NOPAT ÷ (Equity + Debt − Cash) × 100
No. ROIC describes one aspect of a company, a price or a contract, and it is best read alongside other numbers and the business itself. Jivani Markets is a research and education platform; it does not give buy, sell or hold recommendations.