Return on Invested Capital Calculator (ROIC)

Return on Invested Capital (ROIC) shows how well a company turns its capital into profits, expressed as a percentage. A higher ROIC means the company uses money more effectively, helping investors spot strong opportunities. Annualized ROIC adjusts ROIC to compare investments held for different lengths of time, making it easier to evaluate various strategies fairly. Investors use an ROIC calculator by entering total returns, tax rate, capital, and investment duration to assess a company’s performance and compare it with others, guiding decisions on where to invest or hold for better returns. Word count: 88