Executive & Board / Corporate Finance
Return on Invested Capital ROIC (cf. ROCE, ROC)
How much operating profit the company generates for each dollar of capital investors have put to work.
The fork, why two teams get different numbers
Both numerator and denominator are contested.
In the Metric Library
- The full fork, both definitions worked all the way through
- The trap that makes the number lie, on a real export
- Every formula variant, spelled out
- The reconciliation anchor, what to tie it to and when to refuse
Reference: CFA Institute (ROIC / NOPAT framework) ยท FASB ASC 350 (Goodwill)