ROIC
3 explainers tagged “ROIC”.
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Understanding Profitability: Margins and Returns on Capital
Profitability ratios separate genuinely good businesses from merely big ones. Understand gross, operating and net margins, and the returns-on-capital trio — ROE, ROA and ROIC.
Growth Investing Basics: Finding Durable, Profitable Growth
Growth investing bets on faster-than-average expansion. Learn what to measure (revenue, earnings and FCF growth, reinvestment × ROIC, the addressable market), how to tell quality growth from growth at any cost, and why the price you pay still matters.
ROIC vs ROE vs ROI: The Complete Guide to the Three Return Metrics
ROI, ROE and ROIC all measure return on money, but each uses a different definition of “money in”. This guide explains the difference with worked examples — in beginner, intermediate and advanced versions — and shows why ROIC, not ROE, is the metric most tied to long-term value creation.
