Close Navigation
.

Cash Return on Invested Capital

Trading Term

Cash return on invested capital evaluates how efficiently a company converts invested capital into cash returns. Depending on the methodology, analysts may use operating cash flow or an adjusted cash-earnings figure.

Because calculation methods vary, investors should review which cash-flow and capital components are included. The measure is most useful when applied consistently across companies and reporting periods.

IBKR Campus Newsletters

This website uses cookies to collect usage information in order to offer a better browsing experience. By browsing this site or by clicking on the "ACCEPT COOKIES" button you accept our Cookie Policy.