Which calculation measures the return generated by all capital provided to a company?
A)ROE
B)ROA
C)ROIC
D)ROI

Question

Quizplus · Accepted Answer

Return on invested capital (ROIC) measures the return generated by all capital invested in a company, including both equity and debt. It is a comprehensive measure of profitability that takes into account both the operating performance and the capital structure of a company. ROE (return on equity) measures the return generated only by the equity provided by shareholders, while ROA (return on assets) measures the return generated by the assets of a company regardless of how they are funded. ROI (return on investment) is a more general term that can refer to any measure of return relative to the amount invested, but it does not necessarily take into account the specific capital structure or financing of the investment.

Which Calculation Measures the Return Generated by All Capital Provided