MANAGEMENT

Detailed explanation-1: -Return on invested capital (ROIC) is a calculation used to assess a company’s efficiency in allocating capital to profitable investments. The ROIC formula involves dividing net operating profit after tax (NOPAT) by invested capital. ROIC gives a sense of how well a company is using its capital to generate profits.

Detailed explanation-2: -Both ROI and ROE are important, but they measure different things. ROI measures the percentage return on an investment, while ROE measures the percentage return on the equity that has been invested.

Detailed explanation-3: -The difference between ROI and ROA is what they measure. ROI expresses the return on financial investment, while ROA measures how effectively a business uses its total or average assets. And both are commonly used to measure a company’s efficiency.

Detailed explanation-4: -Return on investment (ROI) is a performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of a number of different investments.

Detailed explanation-5: -The term return on capital employed (ROCE) refers to a financial ratio that can be used to assess a company’s profitability and capital efficiency. In other words, this ratio can help to understand how well a company is generating profits from its capital as it is put to use.