# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
ROIC

This figure is the percentage a company earns on its invested capital in a given year (Year 1, 2, etc.).

The calculation is net operating profit after tax divided by average invested capital. The resulting figure is then multiplied by 100. Invested capital equals the sum of total stockholders’ equity, long-term debt and capital lease obligation, and short-term debt and capital lease obligation. ROIC shows how much profit a company generates on its capital base. The better the company, the more profit it generates as a percentage of its invested capital. The company’s net income is found in the income statement. The components of the company’s invested capital are found in the balance sheet.

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