Skip to main content

Return on Invested Capitol

 

Return on Invested Capitol Formula

\( ROIC \;=\; \dfrac{ NOPAT }{ CI }  \)
Symbol
\( ROIC \) = return on invested capitol
\( NOPAT \) = net operating profit after taxes
\( CI \) = capital investment

Return on invested capitol, abbreviated as ROIC, is how good a company is at turning capital into profits. 

Piping Designer Logo 1