ROIC-Return on Invested Capital

There is a definite argument in favor of weighing your consideration of ROIC as an important investment decision making tool.

Return on invested capital (ROIC) is a measure of financial performance as well as a financial performance forecasting tool. ROIC can measure the real cash-on-cash return. We will address that latter statement in this article.

There is a simple formula commonly stated and used for making the calculation: ROIC = Net Income – Dividends Paid) / Total Capital

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