Meaning of “return on invested capital” in the English Dictionary


"return on invested capital" in Business English

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return on invested capitalnoun [ C or U ]

uk us 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)