Listen now (14 min) | OTC Markets Group business model breakdown
Comments:
ROIC is about the earning power.
Removing dividends from net income is not appropriate in the context of earning power.
ROIC
= Net Profit ÷ (Total Equity + Total Debt)
= Unlevered ROE
= ROE ÷ (1 + D/E)
Comments:
ROIC is about the earning power.
Removing dividends from net income is not appropriate in the context of earning power.
ROIC
= Net Profit ÷ (Total Equity + Total Debt)
= Unlevered ROE
= ROE ÷ (1 + D/E)