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.