Return On Gross Invested Capital (ROGIC)
The amount that a company earns on the total investment it has made in its business. Total gross invested capital is equal to all of the shareholders' equity (both common and preferred shares) plus the total gross debt that the company has accumulated before making any payments on the debt. Investopedia Says:
ROGIC is a measure of return expressed as a percentage. Gross invested capital represents the total capital investment before any depreciation or amortization. As such, ROGIC is used because it does not increase artificially, as other measures do, from the write-down of an asset's value. Related Terms:
Economic Value Added - EVA
Market Value Added - MVA
Net Operating Profit After Tax - NOPAT
Return
Return on Capital Employed - ROCE
Return on Investment - ROI
Shareholder Value Added - SVA
Value Stock
Weighted Average Cost of Capital - WACC
Write-Down |