Copyright © Inderes 2011 - present. All rights reserved.
  • Latest
  • Markets
    • Stock Comparison
    • Financial Calendar
    • Dividends Calendar
    • Research
    • Articles
  • inderesTV
  • Portfolio
  • Forum
  • Q&A
  • About Us
    • Our Coverage
    • Team

You seem to be using a wider screen, would you like to enable a wider viewing experience on this page?

The importance of ROIC

A business only generates value if the return on capital invested in the business exceeds the cost required for it. The same applies to growth, which in itself only generates value if the return on reinvested capital exceeds the required return. Opposite to ROE (Return on Equity) , ROIC (Return on Invested Capital) is not subordinated to financing decisions. Analyst Eeemeli Oikarainen explains.

Contents:
00:00 Introduction
00:15 Why should one be interested in ROIC?
01:20 Business metrics
02:02 Formula
04:30 ROE: Retun on Equity
06:35 ROI: Return on Investment
07:43 Margins
09:25 Differencies between industries
11:15 Perfect business in terms of ROIC

Read more in the article: 
The DuPont formula helps understand the dynamics of value creation by Eemeli Oikarainen.

Stay up to date
Investment inspiration
Analyst Interviews

Recent videos

Orion as an Investment | Life Science Night Dec. 9, 2025
2025-12-13 12:50 Orion
A sit-down with CEO Remco Westermann
2025-12-12 09:09 Verve Group
Aiforia as an Investment | Life Science Night Dec 9, 2025
2025-12-11 11:00 Aiforia Technologies
Endomines as an Investment | Investor Day Nov. 24, 2025
2025-12-10 12:30 Endomines Finland
Clas Ohlson, Audiocast, Q2'25
2025-12-10 09:00 Clas Ohlson
View all videos
Find us on social media
  • Inderes Forum
  • Youtube
  • Instagram
  • Facebook
  • X (Twitter)
Get in touch
  • info@inderes.se
  • +46 8 411 43 80
  • Vattugatan 17, 5tr
    111 52 Stockholm
Inderes
  • About us
  • Our team
  • Careers
  • Inderes as an investment
  • Services for listed companies
Our platform
  • FAQ
  • Terms of service
  • Privacy policy
  • Disclaimer
Inderes’ Disclaimer can be found here. Detailed information about each share actively monitored by Inderes is available on the company-specific pages on Inderes’ website. © Inderes Oyj. All rights reserved.