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Topic: Return on Invested Capital

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Return On Capital

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	Return on invested capital - Wikipedia, the free encyclopedia
		It has been suggested that this article or section be merged with Return on capital.
		ROIC is expressed as a percentage and often confused with Return on Capital.
		Return on Invested Capital is a non-GAAP financial measure that quantifies how well a company generates cash flow relative to the capital it has invested in its business.
	en.wikipedia.org /wiki/Return_on_invested_capital (225 words)

	Value Investing Encyclopedia: Return on Capital
		Also, determining what capital is invested within the business and what capital isn’t (e.g., cash) can not be done with precision (some of the cash represents an investment in the business).
		Return on capital is also known as return on invested capital, and abbreviated as either ROC or ROIC.
		The fact that a source uses the term “return on capital” (or ROC) rather than “return on invested capital” (or ROIC) is not a good indication that cash assets are being counted as capital.
	www.gannononinvesting.com /glossary/2005/12/return_on_capital.html (444 words)

	Return on capital - Wikipedia, the free encyclopedia
		It has been suggested that this article or section be merged with Return on Invested Capital.
		Return on capital, also known as Return On Invested Capital (ROIC) is defined as
		When the ROIC is greater than the cost of capital (usually measured as weighted average cost of capital), the company is creating value.
	en.wikipedia.org /wiki/Return_on_capital (167 words)

	Foolish Fundamentals: Return on Invested Capital [Fool.com: Commentary] December 30, 2005
		Note that to calculate ROIC, we use the average invested capital for the period.
		For Alderwoods, invested capital for its fiscal 2004 was $1.4 billion.
		The ROIC for Alderwoods is thus calculated to be 3.5%.
	www.fool.com /news/commentary/2005/commentary05123008.htm (828 words)

	10 Questions With Tom McKissick of TCW Galileo Large Cap Value Fund
		Return on invested capital is essentially the EVA model -- economic value added -- the Stern Stewart that looks at a company's cost of capital and the return on capital.
		First of all, the evidence is that the investments they've made in the past have not generated a return on capital that is in line with or above their cost of capital.
		The cash generation at these rails is improving, and we think their returns on capital will go from a low of, say, 4%, and they're marching up.
	www.thestreet.com /funds/mutualfundmonday10Q/10021958.html (1768 words)

	USATODAY.com - Rules of the ratio game (Site not responding. Last check: 2007-10-22)
		Return on equity (ROE) is measured by dividing a company's net income (from the income statement) by its shareholders' common stock equity (from the balance sheet).
		Return on invested capital goes a step beyond ROE to measure how much net income the company is generating based on all the capital at its disposal, including both debt and equity.
		Return on invested capital is calculated by dividing a company's net income (from the income statement) by the sum of a company's shareholders' equity (from the balance sheet) plus long-term debt (from the balance sheet).
	www.usatoday.com /money/perfi/columnist/krantz/2005-08-03-ratio_x.htm (776 words)

	Return On Gross Invested Capital - ROGIC
		Total gross invested capital is equal to all of the shareholders' equity (both common and preferred shares) plus the total gross debt that the company has accumulated before making any payments on the debt.
		ROGIC is a measure of return expressed as a percentage.
		Spot Quality With ROIC - Return on invested capital is a great way to measure the true value produced by a company.
	baystreet.investopedia.com /terms/r/rogic.asp (179 words)

	What is your return on capital?
		If the same CEO invests the company's cash or equity in a new capital asset, however, his or her expectation for an acceptable ROI is likely quite different.
		At the very least, management should understand the point at which it is theoretically wiser to invest its capital in the company than it is to invest in something else.
		His Cadmus experience taught him that in evaluating acquisitions, it is usually very difficult to earn a return that is greater than the blended cost of capital employed by the acquirer.
	americanprinter.com /mag/printing_return_capital/index.html (728 words)

	A Look at Return on Invested Capital. Inversores :: Investors & VCs
		Return on invested capital, or ROIC, is one of the most fundamental financial metrics.
		ROIC is measured against the WACC, which is what makes it such an important concept.
		On the other hand, an increasing ROIC may indicate that a company is distancing its competitors or that it is being more efficient at deploying capital.
	kalysis.com /content/print.php?sid=46 (1240 words)

	Return on Capital Definition (Site not responding. Last check: 2007-10-22)
		Return on Invested Capital is equal to the following: net operating income after taxes / [total assets minus cash and investments (except in strategic alliances) minus non-interest-bearing liabilities].
		If the Return on Invested Capital of a company exceeds its WACC, then the company created value.
		If the Return on Invested Capital is less than the WACC, then the company destroyed value.
	www.investorwords.com /4247/Return_on_Capital.html (237 words)

	Return On Investment Capital - ROIC
		Comparing a company's ROIC with its cost of capital (WACC) reveals whether invested capital was used effectively.
		Invested capital can be in buildings, projects, machinery, other companies etc. One downside of ROIC is it tells nothing about where the return is being generated.
		- Return on invested capital is a great way to measure the true value produced by a company.
	www.investopedia.com /terms/r/returnoninvestmentcapital.asp (249 words)

	Return on Invested Capital
		ROIC is an instrument that can be used for measuring the historical performance of a business unit or of an entire company.
		The ROIC model is often used to assess the value creation capabilities of a firm or firms in an intuitive way.
		A high ROIC may just as well be an indicator of poor management, caused by harvest behavior, by ignoring growth possibilities, and by long-term value destruction.
	www.12manage.com /methods_roic.html (306 words)

	ROIC - Return on Invested Capital
		Return on Invested Capital or ROIC is an instrument that can be used for measuring the historical performance of a business unit or of an entire company.
		ROIC is a lagging indicator; it provides information on how a company has performed in the past.
		An unbalanced focus on the method ROIC may just as well be an indicator of poor management due to harvesting behavior, ignoring growth possibilities, and long-term value destruction.
	www.valuebasedmanagement.net /methods_roic.html (322 words)

	Global-Investor Bookshop : Cash Return on Capital Invested - Ten Years of Investment Analysis with the CROCI Economic ...
		The result of their effort is an original investment methodology called CROCI (Cash Return on Capital Invested), best described as a variation of the economic profit model.
		The second part is dedicated to the construction of economic data, with the sole objective of calculating an economically meaningful asset multiple and relative return, the combination of which gives an economic PE ratio, the authors main stock selection tool.
		If you need bulk copies of Cash Return on Capital Invested, or are interested in opening a corporate account, please contact us.
	books.global-investor.com /books/23608.htm?ginPtrCode=00000&identifier= (684 words)

	Capital Invested Wisely - Forbes.com (Site not responding. Last check: 2007-10-22)
		One less-used measure is return on invested capital, or ROIC.
		Definitions of return on capital vary, but they all try to capture the same thing: how much a company has earned on all the capital it has invested, which includes both equity and debt.
		By including both, return on capital shows how a company uses all of its financial resources.
	www.forbes.com /2003/05/14/cz_tm_0514sf.html (762 words)

	The Weighted Average Cost of Capital
		The weighted cost of capital (WACC) and the return on invested capital (ROIC) are the most important elements in company valuation and the basis for most strategy and performance evaluation methods.
		Usually it is calculated assuming both a constant cost of capital and a fixed set of target market value weights (Copeland et al) throughout the time frame of the analysis.
		The long-term strategy is a debt-equity ratio of one, the unlevered beta is assumed to be 1.1 and the market risk premium 5.5 percent.
	www.fenews.com /fen49/best-of-fen/best-fen.htm (852 words)

	TWST Conference: Maximize Return on Capital Invested in the Water Industry
		Since as much as 50% of the water intended for delivery to consumers is lost en route, the EPA estimates that $138 billion is required to be spent by 2016 to upgrade or replace the water infrastructure.
		Another solution is to invest in desalinization which may be an attractive alternative to overused groundwater sources.
		Water executives are beset with numerous mandates: They must comply with increasingly stringent clean water regulations, ensure the security of their water systems, invest in desalinization and wastewater treatment and make huge capital commitments to rebuild their antiquated water delivery systems.
	www.twst.com /conferences/water_nov/water_nov.html (690 words)

	Indexation&Allocation: Gaveco
		marginal rate of return is a forward-looking measure.
		expect capital to be mispriced, and thus misallocated.
		capital) and have little potential for growth in its' return on invested capital.
	www.weedenco.com /welling/indexation.htm (1580 words)

	Return on Investment vs Return on Invested Capital \| MarketingProfs
		Return on Investment vs Return on Invested Capital
		Return On Investment Vs Return On Invested Capital
		What you, however, have to do is to run after-show metrics of the sales attributable to your show presence with respect to both old and new customers.
	www.marketingprofs.com /ea/qst_question.asp?qstID=8129 (204 words)

	Economic and accounting rates of return
		The rate of return on invested capital is a central concept in financial analysis.
		The purpose of calculating the rate of return on investment in general is to measure the financial performance, to assess the desirability of a project and to make decisions on the valuation of firms.
		Financial statement users make regular use of the accounting rate of return (ARR) rather than the economic rate of return (IRR) to assess the performance of corporations and public-sector enterprises, to evaluate capital investment projects, and to price financial claims such as shares.
	ideas.repec.org /p/dgr/rugsom/00e42.html (328 words)

	Assignment 8 - Return on Invested Capital (Site not responding. Last check: 2007-10-22)
		Be able to explain why you decided on that measure of total capital.
		Compare ROCE to the measures in Dunn and Bradstreets and Standard and Poors (make sure you use their formulas - not the ones we discussed in class when comparing them).
		Make a table with all ROA and industry averages, and simply refer to the table in the text that discusses it.
	www5.tltc.ttu.edu /kbauer/as8.htm (433 words)

	WMT - Blogging Stocks (Site not responding. Last check: 2007-10-22)
		The security industry and military industrial complex has seen a tremendous influx of capital and specialized technologies are receiving increased levels of research and development capital as well.
		The purpose of the poll is to rate the 100 largest public corporations based on market capitalization in order of the respect they have garnered from these institutions.
		The survey allows the companies to be ranked in one of four categories: "respect highly", "respect", "respect somewhat," and "don't respect." The respondents said that they key factors they used to make their decisions were strong management, sound business strategy, consistent sales and profit growth, ethical business practices, and competitive edge.
	wmt.bloggingstocks.com /.../magic-words-return-on-invested-capital-roic (4994 words)

	Energy Citations Database (ECD) - Energy and Energy-Related Bibliographic Citations
		Availability information may be found in the Availability, Publisher, Research Organization, Resource Relation and/or Author (affiliation information) fields and/or via the "Full-text Availability" link.
		For a journal article, please see the Resource Relation field.
		Arbitrage model for optimal capital transactions in petroleum reserves
	www.osti.gov /energycitations/product.biblio.jsp?osti_id=5365225 (127 words)

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