ROIC vs ROCE: When to Use One Over the Other [Pros & Cons]
Updated 8/25/2023 ROIC (Return on Invested Capital) and ROCE (Return on Capital Employed) are formulas describing how efficiently a company invests its capital. The difference between ROIC vs ROCE is subtle but powerful—basically, one (ROCE) is a shortcut of the other (ROIC). Before diving deeper, here’s the simple cliff notes: Return on Capital Employed Formula […]
Operating Leverage Formula: How to Calculate It with the Income Statement
Updated 9/3/2023 “For a fundamental investor, anticipating revisions in expectations is the key to generating attractive returns. Sources of those revisions include fundamental outcomes (typically earnings revisions) and an assessment of how the market will value those fundamentals (multiple expansion or contraction). Investors who are able to forecast earnings in a year’s time that are […]
