Profitability & Returns

Return on Invested Capital (ROIC)

The return the company earns on all the capital put into the business — both equity and debt. It’s one of the best single gauges of business quality: a company that consistently earns more on its capital than that capital costs is genuinely creating value, while one below its cost of capital is destroying it. Durably high ROIC is the mark of a strong competitive moat.

Educational information, not investment advice. See it applied across the screener →