"Return on invested capital shows **how well the company is using its available capital**. "It is calculated by using the following formula: - ROIC = - net income / capital (equity plus long and short-term debt)" ([Location 2705](https://readwise.io/to_kindle?action=open&asin=B07CNFFJ9J&location=2705)) --- **Tags** -- [[quotes]], [[accounting]], [[return-on-invested-capital]], **Source** -- [[202506221723 - LN - Modern Value Investing]]