Finance & Accounting / FP&A
Return on Invested Capital ROIC
How much after-tax operating profit a business earns for every dollar of capital tied up in running it, the cleanest test of whether growth actually creates value.
The fork, why two teams get different numbers
Two camps build the denominator opposite ways.
In the Metric Library
- The full fork, both definitions worked all the way through
- The trap that makes the number lie, on a real export
- Every formula variant, spelled out
- The reconciliation anchor, what to tie it to and when to refuse
Reference: Non-GAAP analytical measure, no authoritative standard; McKinsey "Valuation" (Koller et al.) · CFA Institute equity analysis · FASB ASC 842 (Leases)