Return on invested capital
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Return on invested capital (also known by its acronym, ROIC) is net operating profit after taxes divided by the operating capital.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Return on invested capital (ROIC). Net operating profit after taxes divided by the operating capital.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
