Dictionary of Business Terms: return on invested capital
return on invested capital
amount, expressed as a percentage, earned on a company's total capital-its common and preferred stock equity plus its long-term funded debt-calculated by dividing total capital into earnings before interest, taxes, and dividends.
Dictionary of Finance and Investment Terms: return on invested capital
return on invested capital
amount, expressed as a percentage, earned on a company's total capital-its common and preferred stock equity plus its long-term funded debt-calculated by dividing total capital into earnings before interest, taxes, and dividends. Return on invested capital, usually termed return on investment, or ROI, is a useful means of comparing companies, or corporate divisions, in terms of efficiency of management and viability of product lines.
