Measures the return generated on the capital invested in the company.

What it Measures ?

How much profit we earn from the money invested in the business.

Relevant StakeHolders 

Investors, CFO

In-depth Use Case / Real-world Example

ROIC is calculated by dividing net operating profit after taxes (NOPAT) by invested capital. If a company has ₹100,000 in NOPAT and ₹500,000 in invested capital, the ROIC is 20%. This metric assesses how well a company generates profits from its capital, helping investors evaluate management's effectiveness.