Return on invested capital is a calculation used to assess a company's efficiency at allocating the capital under its control to profitable investments.The return on invested capital ratio gives a sense of how well a company is using its money to generate returns. Return on investment capital tells us, how effective a company generate profit. ROIC is always calculated as a percentage and is usually expressed as an annualized or trailing 12-month value.If ROIC is greater than a firm's weighted average cost of capital (WACC), the most common cost of capital metric, value is being created and these firms will trade at a premium. A common benchmark for evidence of value creation is a return in excess of 2% of the firm's cost of capital. If a company's ROIC is less than 2%, it is considered a value destroyer. Some firms run at a zero-return level, and while they may not be destroying value, these companies have no excess capital to invest in future growth.
|Return on invested Capital Q|
|Nov 18||Dec 18||Jan 19||Feb 19||Mar 19||Apr 19||May 19||Jun 19||Jul 19||Aug 19||Sep 19||Oct 19|
Copyright (c) 2019. All rights reserved. Before deciding to trade you should carefully consider your investment objectives, level of experience and your risk appetite. Forex and Tradegate quotes are realtime. Prices may not be accurate and may differ from the actual market price. Prices on the website are indicative and solely for informational purposes, not for trading purposes or advice. Please be aware of the risks associated with trading the on financial markets, it is one of the riskiest investment forms. Past performance does not guarantee future profits. We take no responsibility for any losses that may arise as a result of the data contained on this website. The content and the website are provided "as is", without any warranties. In no event will Finscreener.com, its employees, owners, directors, affiliates, partners, data provider, third party or anyone else liable to anyone else for any decision made regarding information on this website.