Return on Invested Capital: Maximizing Wins and Minimizing Mistakes

Published On:
September 30, 2019
Authored By:
Perry D. Wiggins, CFO, APQC
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The measure “return on invested capital” calculates the amount of gain made on invested capital relative to the cost of investment, which gives an organization the ability to track how well it uses its money to generate returns. ROIC can be calculated by dividing your organization’s net operating profit after tax by the amount of invested capital dollars and should be expressed as a percentage. This article focuses on ROIC as reported to APQC’s Open Standards Benchmarking® database.