Return on Invested Capital (ROIC) is a profitability ratio that measures the amount of profit a company generates with the money invested in its business. It's calculated by dividing the company's operating income by its invested capital.
For example, if your company has $10 million in revenue and $5 million in operating income, your ROIC would be 50%.
A high ROIC is the goal for any company, and is a sign that your company is doing well.
For example, if you have $10 million in revenue and $10 million in invested capital, your ROIC would be 100%, which is the highest possible ROIC.