Return on Invested Capitol

Written by Jerry Ratzlaff on . Posted in Manufacturing Engineering

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

 

return on invested capitol Formula

\(\large{ ROIC = \frac{ NOPAT }{ CI }  }\)  

Where:

\(\large{ ROIC }\) = return on invested capitol

\(\large{ CI }\) = capital investment

\(\large{ NOPAT }\) = net operating profit after taxes

 

Tags: Equations for Manufacturing