Enterprise Value to Invested Capital (EV/IC)
The financial metric "Enterprise Value to Invested Capital (EV/IC)" is a ratio that compares a company's total enterprise value (which includes equity and debt) to the amount of money it has invested in the business. Invested capital includes both debt and equity investments from shareholders, and represents the total amount of capital that has been put into the company over time to support its operations.
This metric is important because it provides insights into how efficiently a company is using its invested capital to generate returns. A lower EV/IC ratio typically indicates that a company is generating higher returns on its invested capital, which is generally viewed as a positive sign for investors. Conversely, a higher EV/IC ratio may suggest that a company is not effectively using its capital to create value for shareholders.
Additional Details
Metric Name | Type | Default Period Type |
---|---|---|
ev_to_invested_capital | fin_metric | FY |
Formatting Details
Data Format | Display Format | Unit |
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float | number | multiple |