Corporate Valuation: Return on Invested Capital (ROIC)
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Corporate Valuation: Return on Invested Capital (ROIC)

Intuition Publishing
Updated Sep 24, 2020

ROIC measures a company's pre-tax profit relative to the invested capital of both the company's stockholders and its debtholders. A high ROIC indicates a company is generating a high level of profit relative to its funding. Here we explore how to calculate and interpret return on invested capital.