mentu | introduction to return on invested capital (ROIC)

ROIC Explained - Return on Invested Capital Formula & Concept in 10 Minutes
In this 10-minute video, we break down Return on Invested Capital (ROIC)-a key financial metric used to assess a company’s profitability and efficiency. Learn how ROIC is calculated, why it matters for investors, and how it helps evaluate a company’s ability to generate returns from its invested capital.
What You’ll Learn:
• What is ROIC?: Understand its purpose and why it’s important for financial analysis.
• ROIC Formula: Step-by-step breakdown of how to calculate ROIC.
• How to Interpret ROIC: Learn what a high or low ROIC means for a business.
• ROIC vs. WACC: Understand the relationship between ROIC and the cost of capital.
• Real-World Applications: See how investors and analysts use ROIC to assess company performance.
This video is perfect for finance students, investors, and professionals looking to strengthen their understanding of corporate finance and investment analysis.
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