ROIC: related pages

CROIC

A measure of cash returns (as opposed to accounting profit) relative to total capital investment (as opposed to accounting assets) made in a business.

RoE

Return on equity. profit ÷equity.

RoI

The profit an investment generates as a proportion of the value of the assets used to generate it.

Return on operating capital employed

A variant of ROCE. EBIT ÷(capital + reserves + provisions for liabilities - cash).

ROCE

Return on capital employed. EBIT ÷(shareholders funds + debt).

Accounting rate of return (ARR)

Average operating profit ÷ average book value of assets, as a percentage.

IRR

The discount rate at which the net present value is zero.

MIRR

MIRR is a variant of IRR which has several advantages including a single answer and a more sensible reinvestment assumption.