{"id":1949,"date":"2021-09-08T12:17:01","date_gmt":"2021-09-08T12:17:01","guid":{"rendered":"https:\/\/design302.webdemoserver.online\/?post_type=insights&#038;p=1949"},"modified":"2021-12-03T20:02:05","modified_gmt":"2021-12-03T20:02:05","slug":"return-on-invested-capital","status":"publish","type":"insights","link":"https:\/\/design302.webdemoserver.online\/en-ca\/impact-investing-news\/impact-investment-insights\/return-on-invested-capital\/","title":{"rendered":"Return on Invested Capital"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Common profitability ratios used by analysts include ROA, ROE and ROI, AND <\/span><a href=\"https:\/\/www.linkedin.com\/feed\/hashtag\/?keywords=roic&amp;highlightedUpdateUrns=urn%3Ali%3Aactivity%3A6823960292884574208\"><span style=\"font-weight: 400;\">ROIC<\/span><\/a><\/p>\n<p><span style=\"font-weight: 400;\">The return on invested capital (ROIC) ratio helps us understand how well the company is using its capital to generate profit. <\/span><a href=\"https:\/\/www.linkedin.com\/feed\/hashtag\/?keywords=analysts&amp;highlightedUpdateUrns=urn%3Ali%3Aactivity%3A6823960292884574208\"><span style=\"font-weight: 400;\">Analysts<\/span><\/a><span style=\"font-weight: 400;\"> also use the ROIC as a benchmark to compare its value to other companies.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A simple way to calculate the ROIC is to divide the net operating profit after tax by the invested capital.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">ROIC= (Net income- Dividend)\/ (Debt +Equity)<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As there are many other ways to calculate the <\/span><a href=\"https:\/\/www.linkedin.com\/feed\/hashtag\/?keywords=roic&amp;highlightedUpdateUrns=urn%3Ali%3Aactivity%3A6823960292884574208\"><span style=\"font-weight: 400;\">ROIC<\/span><\/a><span style=\"font-weight: 400;\">, let us know how you calculate it.<\/span><\/p>\n<span class=\"et_bloom_bottom_trigger\"><\/span>","protected":false},"excerpt":{"rendered":"<p><span style=\"font-weight: 400;\">The return on invested capital (ROIC) ratio helps us understand how well the company is using its capital to generate profit. Analysts also use the ROIC as a ratio to compare its value to other companies.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A simple way to calculate the ROIC is to divide the net operating profit after tax by the invested capital.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">ROIC= (Net income- Divident)\/ (Debt +Equity)<\/span><\/p>\n","protected":false},"author":1,"featured_media":2688,"comment_status":"open","ping_status":"closed","template":"","meta":{"_acf_changed":false,"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"class_list":["post-1949","insights","type-insights","status-publish","has-post-thumbnail","hentry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Return on Invested Capital - Clear Skies<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/design302.webdemoserver.online\/en-ca\/impact-investing-news\/impact-investment-insights\/return-on-invested-capital\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Return on Invested Capital - Clear Skies\" \/>\n<meta property=\"og:description\" content=\"The return on invested capital (ROIC) ratio helps us understand how well the company is using its capital to generate profit. 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