Return On Invested Capital

Return on Invested Capital - Return on Invested Capital is a non-financial measure that sets the general rule of thumb to help a company or corporation to see the progress or, lack of progress in their capital investment. The innate ability to generate a consistent cash flow coincides with the movement and, constant flow in the relation to the cash capital initially invested in the business. It is the net operating profit generated, minus the adjusted taxes and, then divided by the initial invested capital which includes monetary capital, financial debt and, shareholders' equity. This will give you total capital return on your initial investment.