Return on Invested Capital

Definition

ROIC. A measure of how effectively a company uses the money (borrowed or owned) invested in its operations. Calculated by: net income after taxes / (total assets less excess cash minus non-interest-bearing liabilities).

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Related Terms

Return on Capital - More

ROC - More

Popular 'Accounting' Terms

current ratio
equity
working capital
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revenue
net income
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net profit
net worth

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Nearby Terms

Return on Assets
Return on Capital
Return on Capital Employed
return on common equity
Return on Equity
Return on Invested Capital
Return on Investment
return on net assets
return on net worth
Return on Sales
Return on Total Assets

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