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Return on Invested Capital (ROIC)

Return on invested capital (ROIC) is a financial metric used to measure a company's effectiveness in generating profits from its investments in capital. ROIC compares the company's net operating profit after taxes (NOPAT) to the amount of capital it has invested, both equity and debt.

The formula for calculating ROIC is:

ROIC = NOPAT / (Total Debt + Shareholders' Equity)

By comparing the company's NOPAT to its total invested capital, ROIC provides insight into how efficiently a company is using its invested capital to generate profits. It is used to evaluate the potential returns of investments in a particular company in comparison with other companies and to determine the long-term profitability of a company.

Additional Details

Metric Name Type Default Period Type
roic fin_metric FY

Formatting Details

Data Format Display Format Unit
float perc percentage