ROIC
Return on invested capital
Example
We have a high percentage ROIC but we aren't sure where the return is being generated
Related Slang
| ROI | Return on investment |
| EBT | Earnings before taxes |
| ISO | Incentive stock option |
| NSO | Non-qualified stock option |
| NQSO | Non-qualified stock option |
| CEO | Chief executive officer |
| CFO | Chief financial officer |
| P/E | Price-to-Earnings Ratio |
| EPS | Earnings per share |
How well do you know your texting slang?
An acronym that stands for the calculation used to determine a company's ability to allocate the capital it controls into profitable investments.
ROIC helps measure how well a company uses its money to generate returns. A company's return on invested capital is calculated as a percentage. It can be found by subtracting dividends from the net income and divide it by the total capital.