Return on Invested Capital (ROIC)

The percentage amount that a company is making for every percentage point over the [Cost of Capital. | Weighted Average Cost of Capital (WACC). More specifically the return on investment capital is the percentage return that a company makes over its invested capital. However, the invested capital is measured by the monetary value needed, instead of the assets that were bought. Therefore, invested capital is the amount of long-term debt plus the amount of common and preferred shares

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