Finance: ROIC for the Uninitiated

ROIC is the Return On Invested Capital and, simply put, indicates how well a company is using it’s capital. As such, this is a very powerful indicator and forecasting tool for the current and future profitability of a company. However, because of it’s relative complexity, it is often overlooked in favor of simpler metrics. If …

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Finance: WACC for the Uninitiated

WACC stands for “Weighted Average Cost of Capital”. WACC is used by investors and analysts,¬†for a variety of purposes including as a way to assess perspective investments. This post is meant to give a very basic overview of what this concept is, and why it is important. The Cost of Capital A company’s capital is …

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