Return on invested capital

By | 2017-09-13T15:30:01+00:00 13th September 2017|

Return on capital employed (ROIC) assesses a company’s profitability and the efficiency with which its capital is deployed. ROIC is calculated as: Net income minus dividends paid / total invested capital (debt + equity) and is expressed as a percentage. There are other ways of defining invested capital, such as net book value of equity vs debt and net working capital.