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Return on invested capital

Return on invested capital

Description

Return on invested capital (ROIC) is a ratio that shows how well company’s financial resources are used to produce profit. As a rule ROIC is expressed as a percentage. Data to calculate this ratio is collected from the income statement, balance sheet and profit distribution statement.

Norms and limitations

There are no general norms for this ratio.

It is recommended to compare this ratio with ratios of companies working within the same industry.

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