Profit as a proportion of the total capital invested in a business rather than assets shown in the balance sheet.... more on: Return on invested capital
The amount, expressed as a percentage, earned on a company's total capital for a given period.
an important model (net profit divided by PP&E + inventory + accounts receivable - accounts payable) that can help OEMs determine the cost effectiveness of outsourcing. By decreasing fixed costs, such as PP&E, an OEM can immediately lower total costs, increase its return on invested capital, increase its return on equity, and increase its return on assets. The OEM's break even point may be achieved sooner, with lower volumes, less revenue and against lower costs.
Return on invested capital (ROIC) is a measure of financial performance and a financial performance forecasting tool.
the measure of money earned as a percentage of all invested capital. Calculated by dividing long-term liabilities and shareholders' equity into net income. (Net Income / (Long-term liabilities + Shareholders Equity)) Page 331
Latest twelve month's net earnings divided by the most recent quarter invested capital (long-term debt plus common stock equity plus preferred equity).
Net income plus interest expense divided by total capitalization.