Return on Invested Capital (ROIC) is a measure of financial performance that is calculated by dividing Net Operating Profit After Taxes (NOPAT) by the sum of average shareholder's equity and the debt.ROIC is the most useful in assessing the performance of the underlying business. It measures how much it costs the business to grow.
Learn Return on Invested Capital with interactive examples and practice exercises in our Performance Metrics module.
This interactive learning module helps you understand Return on Invested Capital through hands-on practice and real-world examples.