Return On Gross Invested Capital - ROGIC

DEFINITION of '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.

BREAKING DOWN 'Return On Gross Invested Capital - ROGIC'

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
  1. Gross Income

    1. An individual's total personal income, before accounting for ...
  2. Gross Profit

    A company's total revenue (equivalent to total sales) minus the ...
  3. Gross Earnings

    1. For individuals, the total income earned in a year, as calculated ...
  4. Gross Margin

    A company's total sales revenue minus its cost of goods sold, ...
  5. Gross Rate Of Return

    The total rate of return on an investment before the deduction ...
  6. Invested Capital

    The total amount of money that was endowed into a company by ...
Related Articles
  1. Personal Finance

    What is Gross Income?

    Gross income is an individual’s total income before taxes and other adjustments are considered.
  2. Investing

    Total Debt to Total Assets

    Total Debt to total assets, also called the debt ratio, is an accounting measurement that shows how much of a company’s assets are funded by borrowing. In business, borrowing is also called leverage.
  3. Managing Wealth

    Understanding Total Returns

    Total return measures the rate of return earned from an investment over a period of time.
  4. Investing

    Evaluating A Company's Capital Structure

    Learn to use the composition of debt and equity to evaluate balance sheet strength.
  5. Investing

    How Gross Margin Can Make or Break Your Startup

    Find out how your startup's gross margin can impact your business, including why a mediocre margin may spell disaster for a budding business.
  6. Investing

    Understanding Gross Sales

    Gross sales represents the overall revenue of a company through its sales activities.
  7. Insights

    June Not a Great Month for Investors, says Gross

    Bond guru Bill Gross released his investment outlook for June yesterday and it's not exactly positive.
  8. Markets

    Target Corp: WACC Analysis (TGT)

    Learn about the importance of capital structure when making investment decisions, and how Target's capital structure compares against the rest of the industry.
  9. Investing

    Key Financial Ratios to Analyze Investment Banks

    Find out which financial ratios are most useful when analyzing an investment bank, and why tracking capital efficiency is especially important.
  10. Investing

    What is the Shareholder Equity Ratio?

    The shareholder equity ratio shows how much money shareholders will receive if a company has to liquidate its assets.
RELATED FAQS
  1. What is the difference between gross margin and gross profit?

    Understand the difference in definitions between gross margin and gross profit, and learn what each represents as a metric ... Read Answer >>
  2. What are the different ways that corporations can raise capital?

    Find out about the most common types of debt and equity capital, and how things such as interest and dividend payments factor ... Read Answer >>
  3. What are the differences between gross profit and gross margin?

    Learn how gross profit and gross margin are calculated and how each is used in fundamental analysis. Generally, these numbers ... Read Answer >>
  4. Does gross profit include tax?

    Find out what gross profits are, how they are calculated, how they are interpreted by investors and whether taxes are taken ... Read Answer >>
  5. What is the point of calculating gross sales?

    Learn how doing simple gross sales and gross profit calculations can serve to help change a company's profit ratio and overall ... Read Answer >>
  6. What are the different capitalization ratios?

    Learn about capitalization ratios, three different ratios that measure debt in relation to capital structure and how to calculate ... Read Answer >>
Hot Definitions
  1. Bond Ladder

    A portfolio of fixed-income securities in which each security has a significantly different maturity date. The purpose of ...
  2. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  3. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  4. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  5. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  6. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
Trading Center