Profitability

What is ROIC (Return on Invested Capital)?

ROIC measures how well a company generates returns on ALL capital invested in the business, both equity and debt, making it the purest measure of business quality.

Formula

ROIC = NOPAT ÷ Invested Capital

How to Interpret

A company creates value only when ROIC exceeds its cost of capital (WACC). ROIC > 15% sustained over 5+ years signals an exceptional business.

Typical Ranges

Above 15% is strong. Above 20% sustained = likely economic moat.

Analyze ROIC (Return on Invested Capital) by Indian Market Sector

See how roic (return on invested capital) varies across major Indian (NSE/BSE) market sectors. US sector benchmarks are summarised in the Typical Ranges section above.

Banking & Financial Services Information Technology Pharmaceuticals & Healthcare FMCG (Fast-Moving Consumer Goods)Automobile & Auto Components Energy & Oil & Gas Infrastructure & Construction Real Estate Telecom Metals & Mining Chemicals & Specialty Chemicals Insurance

Learn More in the Academy

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Return on CapitalEquities

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Competitive Advantage & Economic MoatsFundamental Analysis

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Profitability RatiosFundamental Analysis

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Capital Allocation DecisionsFundamental Analysis

Find Stocks Using This Metric

Use the Equiscale Stock Screener to filter US or Indian stocks by ROIC.

US Stock Screener →Indian Stock Screener →