Invested Capital represents the total cash investment that shareholders and debtholders have made in a company. There are two different but completely equivalent methods for calculating invested capital. The operating approach is calculated as: ...
Definition
Invested capital
The sum of a corporation's total equity and long-term debt. Also referred to as Capitalization.
RELATED TERMS ...
Invested Capital =Total Assets - Non-Interest bearing Current Liabilities - Free Cash Flow
(Non-interest bearing current liabilities usually are Accounts Payable and other Current Assets) ...
Invested capital (IC), as you would imagine, measures how much capital a company has invested in its business. Although there are many different ways of measuring IC, in general, I calculate this as: ...
Return on Invested Capital (ROIC) is used to determine how efficiently a company generates earnings from capital invested in their business. It measures the amount of cash generated by each dollar of capital invested in a company's operations.
Return On Invested Capital
Return On Equity
Related Definitions
Return On Invested Capital
Stockholder's Equity
Return On Equity
Cash Flow Return on Investment ...
Return on Invested Capital
Share
Return on Invested Capital measures a companies net operating profit as a percentage of the leverage that they are using.
Total invested capital
Total invested capital is a tally of all the outside investments a company's management has used to finance its business -- everything from equity (the amount of stock sold) to long-term debt.
Return on Invested Capital (ROIC) is a sophisticated way of analysing a stock for return on Capital that adjusts for some peculiarities of RoA and RoE.
Return on invested capital
Return on invested capital (ROIC) is a measure of financial performance and a financial performance forecasting tool.
Return on Invested Capital (RIC): The amount earned on a corporation's total capital, expressed as a percentage.
See Return on Invested Capital.
Investing terms and definitions starting with
Numbers A B C D E F G H I J K L M N O P Q R S T U V W Q Y Z ...
Return On Gross Invested Capital - ROGIC
Please select a term from the left to see the corresponding definition.
ROIC: Return on Invested Capital.
Roll Over: Reinvest funds from a maturing issue into a new issue.
RP: See repo/repurchase agreement.
The proceeds of the sale are then reinvested into an area of the business that will produce a higher return on the invested capital.
Share buybacks.
This is where a company purchases its own shares as a shareholder reward.
Return on Capital - The return on capital, or ROC, is calculated by taking the latest 12-months' net income divided by invested capital. Invested capital is defined as long term debt plus common stock and preferred equity.
The value of its invested funds may be increasing at what seems to be a acceptable level, but if the invested capital is not growing at a rate above inflation, the investment is actually losing its value on an annual basis.
Bonds considered suitable for preservation of invested capital by the rating agencies and rated Baa or BBB or above.
Issuer
A state, political subdivision, agency or authority that borrows money through the sale of bonds or notes.
Yield - it is the income on invested capital in the form of percent. It is counted for the term of one year.
The following terms will appear in the glossary soon:
Yield Curve
Yield to Maturity ...
Return on Capital (return on invested capital)
The product of dividing the most recent 12 months of income (after taxes) by the total of the shareholder’s equity and long term liabilities.
Return on Equity ...
Return on Capital (return on invested capital): after tax income (latest 12 months) divided by total of shareholder's equity plus long term debt, plus other long term liabilities.
CAPITALIZATION:
Also known as Invested Capital. The sum of a corporation's stock, long-term debt and retained earnings.
Never trade with money you can't afford to lose. And never risk more than 3% of your invested capital in any trade. When you calculate your risk, take into account: your Stoploss vs your target - the lot size vs your capital.
Watered stock
A stock representing ownership in a corporation that is worth less than the actual invested capital, resulting in problems of low liquidity, inadequate return on investment, and low market value.
Return on Investment
Measures the income earned on the invested capital.
Formula
Net Income *
Long-term Liabilities + Equity ...
A measure indicating how effectively investment capital is used to produce revenues. Capital turnover is expressed as a ratio of annual sales to invested capital.
Learn more about capital turnover
» capital turnover business definition ...
Stands for "other people`s money," which refers to borrowed funds used to increase the Return on invested capital.
Related Links: ...
A metric used in investment decisions. It is based on the expected discounted cash flow in relation to invested capital.
Cash Value Added (CVA) ...
In our more conservative example we are going to buy the April $440 put for $44.50 and place a stop on it to exit the trade if it we lose 50% of our invested capital.
Leverage
Possibility to purchase shares and other types of investment product in an amount higher than the invested capital.
Another type of preferred stock is the Perpetual Preferred Stock, where the owner of the stock hasn't a set date for receiving their invested capital.
This beginners guide to investing or as some call it 'stock market for dummies guide' was build to help you manage your personal finance in the most secured possible way and by receiving optimal yield on invested capital at the same time; ...
The size of an investment is increased through dividend reinvestment and compound interest which yields a higher dollar return in the process Return on Investment is based on the invested capital and represents a percentage return.
If the stock price moves above the exercise price of the written Calls, it clearly is better to close the position or, in any case, buy back the Calls; otherwise, if the stock price keeps moving up, the invested capital is blocked.
Option strategies can be designed to lock in a maximum loss and gain and allow for risk reduction while improving the leverage available to the invested capital.
State regulatory commissions try to strike a balance between a utility's need to earn a fair rate of return on its invested capital while ensuring that the company's customers don't pay excessive prices.
With a relatively small investment compared to the actual price of the commodity, in contract volume, the trader can make a substantial profit as compared to his invested capital by careful and well practiced use of technical analysis using ...
Return on Invested Capital ROIC is a calculation used to assess the profitability of a firm by determining... Return on Investment Abbreviated as ROI, refers to a measure of a corporation's profitability, equal...
 See also: Capital, Return, Market, Stock, Asset
  
|
RSS
