Return on Investment Capital(redirected from Return on invested capital)
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Return on Investment Capital
A measure of how efficiently a company generates cash flow compared to how much capital is invested in the company. It is calculated by taking its net operating profit after taxes and dividends and dividing by the total amount of capital invested and expressing the result as a percentage. Companies seek to have a return on investment capital greater than its cost of capital. It is also called return on invested capital and simply return on capital.