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English definition of “return on invested capital”

return on invested capital

noun [C or U]
 
 
( abbreviation ROIC)
FINANCE, ACCOUNTING a company's profit for a particular period compared with the capital invested in the company. This shows how effectively the company is using the amount of capital invested in it to make a profit: Last year they reported a 20% return on invested capital.
(Definition of return on invested capital from the Cambridge Business English Dictionary © Cambridge University Press)
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