return on invested capital


return on invested capital
return on invested capital UK US noun [C or U] (ABBREVIATION ROIC)
FINANCE, ACCOUNTING a company's profit for a particular period compared with the capital invested in the company. This shows how effectively the company is using the amount of capital invested in it to make a profit: »

Last year they reported a 20% return on invested capital.


Financial and business terms. 2012.

Look at other dictionaries:

  • return on invested capital — noun (corporate finance) the amount, expressed as a percentage, that is earned on a company s total capital calculated by dividing the total capital into earnings before interest, taxes, or dividends are paid • Syn: ↑return on investment, ↑ROI •… …   Useful english dictionary

  • Return On Invested Capital - ROIC — A calculation used to assess a company s efficiency at allocating the capital under its control to profitable investments. The return on invested capital measure gives a sense of how well a company is using its money to generate returns.… …   Investment dictionary

  • Invested Capital — represents the total cash investment that shareholders and debtholders have made in a company. There are two different but completely equivalent methods for calculating invested capital. The operating approach is calculated as:Invested capital =… …   Wikipedia

  • Return On New Invested Capital - RONIC — A calculation used, either by a firm or investors, to determine the amount of return that a firm could earn on additional contributed capital. The calculation measures the return generated when a company converts its capital into capital… …   Investment dictionary

  • Invested Capital — The total amount of money that was endowed into a company by the shareholders, bondholders and all other interested parties. Invested capital is often determined by adding the total debt and lease obligations to the amount of equity in the firm… …   Investment dictionary

  • Return On Gross Invested Capital - ROGIC — The amount that a company earns on the total investment it has made in its business. Total gross invested capital is equal to all of the shareholders equity (both common and preferred shares) plus the total gross debt that the company has… …   Investment dictionary

  • Return on capital — Return on invested capital (ROIC) is a financial measure that quantifies how well a company generates cash flow relative to the capital it has invested in its business. It is defined as Net operating profit less adjusted taxes divided by Invested …   Wikipedia

  • Return on capital employed — (ROCE) is used in finance as a measure of the returns that a company is realising from its capital employed. It is commonly used as a measure for comparing the performance between businesses and for assessing whether a business generates enough… …   Wikipedia

  • return on investment — noun (corporate finance) the amount, expressed as a percentage, that is earned on a company s total capital calculated by dividing the total capital into earnings before interest, taxes, or dividends are paid • Syn: ↑return on invested capital,… …   Useful english dictionary

  • Capital asset pricing model — In finance, the Capital Asset Pricing Model (CAPM) is used to determine a theoretically appropriate required rate of return of an asset, if that asset is to be added to an already well diversified portfolio, given that asset s non diversifiable… …   Wikipedia