Return Metrics (ROA / ROE / ROIC)

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What it means

Return on Assets, Equity, and Invested Capital — how well capital is deployed.

Why it matters

ROIC vs. cost of capital is the single most important test of value creation.

How to calculate — with Cawan's Shoes

ROA = NI/Assets. ROE = NI/Equity. ROIC = NOPAT / Invested Capital. Cawan's: 11.7% / 28% / 15%.

What's at stake if you ignore this

ROIC below WACC destroys shareholder value.