AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
Boring Companies, Exciting Returns
Motley Fool Money
The Importance of Return on Invested Capital
2min Snip
00:00
Summary
Transcript
Episode notes
Return on invested capital is one of the single most important financial metrics for investors. When a company has a high ROIC, it needs less capital grow earnings and therefore generates more free cash flow. There are certain times when a return on investment capital metric will not be as useful. Higher ROIC can lead to a higher stock price which could lead to better returns for investors.
Get the Snipd
podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered
Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any
moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share
& Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode