ROIC, short for Return on Invested Capital, is arguably one of the most important metrics in finance.
The ratio compares the Return a company generates, measured as NOPAT, to its Invested Capital found in its balance sheet.
Updated 5/4/2023 Investors target high ROIC stocks for their portfolio because highly efficient companies can sustain higher long-term growth. Companies with a high ROIC tend
“A truly great business must have an enduring ‘moat’ that protects excellent returns on invested capital.” –Warren Buffett, 2007 Shareholder Letter Another quote from Buffett
“Leaving the question of price aside, the best business to own is one that over an extended period can employ large amounts of incremental capital
Corporate officers are in the business of allocating capital. The goal for each CEO is to return an attractive return on its capital. All companies
Measuring a business’s economic moat is a challenge, but a comparison using several metrics allows us to get an economic moat idea. That comparison is
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