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What is ROIC – Return on Invested Capital
Return on Invested Capital (ROIC) is a term that indicates the return on invested capital. It is used for retrospective assessment of profitability.

Return on Invested Capital, usually the abbreviation ROIC is used. It is a term that indicates the return on invested capital. It is used for retrospective assessment of profitability.

Calculation:

ROIC = EAT / Total assets - current financial assets - current non-interest bearing liabilities)

The ratio is less used equivalent of the ratio Return on investment (ROI).

Use of the ROIC in practice: In the enterprise it used by CFO in financial analysis to analyze ratios.

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Last update: 04.11.2016

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