Financial Terms Glossary

Return On Investment Capital (ROIC)

Formal

A simple percentage comparison between the profits generated by a business and the Investment Capital (Shares and Loans) needed to generate that profit. Eg I have £1 Million investment in a business and make £100,000 profits per annum = 10% Return On Investment Capital.

Informal

I make a £1 Million profit every year. This sounds good, but if I have used £100 Million of investment capital (loans and shares) to generate this amount then this return is not so good after all. This is because I have only returned 1% on the investment capital given to the business to realise this profit.

What we do

At Shark Finesse we have created business case software to help you win budget and change the way you talk to customers about business value.
Find out how

We'd love to hear from you!

Phone
+44 (0)1256 338635
Address
Grove House, Lutyens Close
Basingstoke, Hampshire
RG24 8AG, UK