Return on Invested Capital

Summary

The return generated from capital invested in the business.

Conventional Definition

Return on Invested Capital is commonly calculated as net operating profit after tax divided by invested capital.

Value Realization-Oriented Definition

In Value Realization, ROIC assesses whether committed capital is producing realized performance beyond its opportunity cost and risk profile.

Notes

This draft measure is an indicator, not a complete proof of realized value. It should be interpreted with baseline, attribution, timing, confidence, quality, risk, and sustainability evidence.