What is the meaning of RETURN ON INVESTED CAPITAL (ROIC)?

RETURN ON INVESTED CAPITAL (ROIC) is a measure of how effectively a company uses the money (owned or borrowed) invested in its company operations. It is calculated by: net income after taxes / (total assets less excess cash minus non-interest-bearing liabilities).

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APABarry Goldsmith. (2010). RETURN ON INVESTED CAPITAL (ROIC). Retrieved September 28, 2026, from http://smartdefine.org/return_on_invested_capital_(roic)/definitions/1162477
ChicagoBarry Goldsmith. 2010. "RETURN ON INVESTED CAPITAL (ROIC)" http://smartdefine.org/return_on_invested_capital_(roic)/definitions/1162477 (accessed September 28, 2026).
HarvardBarry Goldsmith 2010, RETURN ON INVESTED CAPITAL (ROIC), Smart Define, viewed 28 September, 2026, <http://smartdefine.org/return_on_invested_capital_(roic)/definitions/1162477>.
MLABarry Goldsmith. "RETURN ON INVESTED CAPITAL (ROIC)" 21 October 2010. Web. 28 September 2026. <http://smartdefine.org/return_on_invested_capital_(roic)/definitions/1162477>