Counterpoint Global Insights ROIC and the Investment Process

Return on invested capital (ROIC) provides insight into some important concepts in business.1 One is the old saying that you must spend money to make money.

“Spend money” recognizes a company has to make investments in people and assets before it can offer a viable good or service to the market. Invested capital, the denominator of ROIC, seeks to reflect the cumulative amount of that investment spending.

Counterpoint Global Insights ROIC and the Investment Process