Return on invested capitol, abbreviated as ROIC, is how good a company is at turning capital into profits.
return on invested capitol Formula |
| \(\large{ ROIC = \frac{ NOPAT }{ CI } }\) |
| Symbol |
| \(\large{ ROIC }\) = return on invested capitol |
| \(\large{ CI }\) = capital investment |
| \(\large{ NOPAT }\) = net operating profit after taxes |
