ROIC
Return on invested capital: operating profit after tax over the capital employed. The owner’s test of whether growth creates value or consumes it.
Also called Return on invested capital
ROIC in round numbers
Say a company earns 8.0m of after-tax operating profit on 40.0m of invested capital, its ROIC is 20%. Hanil’s profile gives operating income and total assets but not a clean after-tax operating profit or invested capital split, so no ROIC figure is built here.
| first | 8.0m after-tax operating profit |
|---|---|
| ÷ | 40.0m invested capital |
| = | 20% |