**Id:**`return_on_inv_capital`

**Type:**`fundamentals`

**Subtype:**`ratios`

**Units:**`percentage`

**Decimal Points:**`2`

**Currency Convertible:**`No`

**Tags:**`“return on invested capital”, “ROIC”, “return on capital employed”, “ROCE”, “invested capital profitability”`

Return on Invested Capital is a way to measure how well a company uses its money to make profits. It shows how much operating income a company earns for every dollar of capital invested. Capital invested is the total amount of money that shareholders and debtholders have given to the company, minus any cash or cash equivalents. Return on Invested Capital can help investors and analysts compare the value of different companies and evaluate how efficiently a company allocates its capital to profitable projects.
The formula for Return on Invested Capital is:
Where:
- TTM Net operating profit after tax is TM019, ttm_net_op_prof_after_tax
- Average Invested Capital is the average of the initial and final value of Total Invested Capital (R0134, total_invested_capital).

`Return on Invested Capital = 100 * (TTM Net operating profit after tax / Average invested capital)`