Return On Gross Invested Capital - ROGIC

Return On Gross Invested Capital - ROGIC

The amount that a company earns on the total investment it has made in its business. 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.

Notes:

ROGIC is a measure of return expressed as a percentage. Gross invested capital represents the total capital investment before any depreciation or amortization. As such, ROGIC is used because it does not increase artificially, as other measures do, from the write-down of an asset's value.

See also: Economic Value Added - EVA, Market Value Added - MVA, Net Operating Profit After Tax - NOPAT, Return, Return on Investment - ROI, Return on Capital Employed - ROCE, Shareholder Value Added - SVA, Value Stock, Weighted Average Cost of Capital - WACC, Write-Down