return on invested capital Synonyms
No Synonyms and anytonyms found
return on invested capital Meaning
return on invested capital (n)
(corporate finance) the amount, expressed as a percentage, that is earned on a company's total capital calculated by dividing the total capital into earnings before interest, taxes, or dividends are paid
return on invested capital Sentence Examples
- The company's return on invested capital (ROIC) exceeded industry benchmarks, indicating efficient use of capital.
- Investors are attracted to projects with a promising ROIC, as it demonstrates the potential for financial gain.
- The ROIC of a business unit is often used to assess its operating efficiency and profitability.
- A high ROIC indicates that the company is generating substantial profits for each dollar of capital invested.
- The ROIC calculation provides a valuable insight into how well a company is deploying its capital.
- Companies strive to maximize their ROIC by optimizing capital allocation and investing in high-return projects.
- By improving operational efficiency, companies can enhance their ROIC and increase returns for shareholders.
- Monitoring ROIC over time allows companies to identify areas for improvement in capital utilization.
- A low ROIC can be a red flag, indicating inefficient capital management or declining business performance.
- The ROIC metric is a key consideration in evaluating the financial health and investment potential of a company.
FAQs About the word return on invested capital
(corporate finance) the amount, expressed as a percentage, that is earned on a company's total capital calculated by dividing the total capital into earnings be
No synonyms found.
No antonyms found.
The company's return on invested capital (ROIC) exceeded industry benchmarks, indicating efficient use of capital.
Investors are attracted to projects with a promising ROIC, as it demonstrates the potential for financial gain.
The ROIC of a business unit is often used to assess its operating efficiency and profitability.
A high ROIC indicates that the company is generating substantial profits for each dollar of capital invested.
