Return on Invested Capital Calculator

Posted by Dinesh on

Return on invested capital (ROIC) is a calculation used to assess a company's efficiency at allocating the capital under its control to profitable investments. The return on invested capital ratio gives a sense of how well a company is using its capital to generate profits.

Return on Invested Capital Calculation

Formula:

ROIC = (n - d) / t

Where,
ROIC = Return on Invested Capital
n = Net Income
d = Dividends
t = Total Capital