LearnCalculated from reported figures
ROIC
After-tax operating profit earned on the capital invested in the business.
In simple terms: How efficiently the company turns the money invested in it into profit.
Why should I care?
How it's calculated
Operating income × (1 − tax rate) ÷ (Debt + Equity − Cash)
Watch out for
Uses period-end balances and effective tax rate (21% if unavailable).
In general, a higher value is considered favourable — but always compare within the same industry, because what counts as “normal” varies widely.