RETURN ON INVESTED CAPITAL Definition

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RETURN ON INVESTED CAPITAL (ROIC) is a measure of how effectively a company uses the money (owned or borrowed) invested in its company operations. It is calculated by: net income after taxes / (total assets less excess cash minus non-interest-bearing liabilities).

Learn new Accounting Terms

PEGBOARD SYSTEM see ONE-WRITE SYSTEM.

TEMPORARY ACCOUNT see NOMINAL ACCOUNT.

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