ROIC strips out cash and non-operating assets to focus on productive capital. Businesses whose ROIC consistently exceeds cost of capital create shareholder value over time.
Practice this in Aurora
See a plain-English bull/bear/bias breakdown on any stock — no signup needed.
Open Decision Lab →Frequently asked questions
What is a good ROIC?
Above the company's weighted-average cost of capital (WACC) — often 10–15% for mature businesses in developed markets.