Return on Invested Capital. 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).

Use ROIC in a sentence

You need to make sure that you are getting as high of an ROIC as you can so that all of your hard work paid off.

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I asked if there would be an ROIC and no one answered me, so I decided to leave for the day and not worry about it.

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I've found that the best return on invested capital (ROIC) comes from using a time machine and only funding companies that are going to succeed.

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