ROIC (Return on Invested Capital)

Examples

1. 01The company's ROIC is 14 %, above its cost of capital of 9 %, so the business creates value.
2. 02ROIC is reviewed by business unit every quarter, showing that the unit with the highest inventory has the lowest return.
3. 03Cutting inventory by EUR 4 million raises ROIC by more than a full percentage point without any change in profit.