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ROIC -Return on invested capital
(Return on Invested Capital)
ROIC= NOPAT Net Operating Profit After Tax / Invested Capital
ROIC ratio of the firm resources andEquityIt shows how productive the capital invested is. The higher the ratio, the better it is interpreted. But here of the company Cost of capital (AOSM) is important. AOSM calculationOur DCF analysisWe added the calculation tool below. An ROIC above this ratio is a sign of growth and high efficiency.
The only way to invest is to pick good stocks in good times and stay with them as long as they continue to be good companies.
Warren Buffet
Net Operating Profit:
Gross profit - (General Administrative Expenses+Marketing Expenses+R&D Expenses)
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For detailed information about filling out the AOSM table DCF Method You can also access our page.
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