Return On Gross Invested Capital - ROGIC

Filed Under »
Dictionary Says

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.
Investopedia Says

Investopedia explains '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 Definitions

  • Return On Investment - ROI

    A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. To calculate ROI, the benefit (return) of an ...
    Read More »
  • Return On Capital Employed - ROCE

    A ratio that indicates the efficiency and profitability of a company's capital investments.Calculated as:
    Read More »
  • Return

    The gain or loss of a security in a particular period. The return consists of the income and the capital gains relative on an investment. It is usually quoted as a percentage.
    Read More »
    • Weighted Average Cost Of Capital - WACC

      A calculation of a firm's cost of capital in which each category of capital is proportionately weighted. All capital sources - common stock, preferred stock, bonds and any other ...
      Read More »
    • Shareholder Value Added - SVA

      A value-based performance measure of a company's worth to shareholders. The basic calculation is net operating profit after tax (NOPAT) minus the cost of capital from the issuance of ...
      Read More »
    • Economic Value Added - EVA

      A measure of a company's financial performance based on the residual wealth calculated by deducting cost of capital from its operating profit (adjusted for taxes on a cash basis). (Also ...
      Read More »
    • Value Stock

      A stock that tends to trade at a lower price relative to it's fundamentals (i.e. dividends, earnings, sales, etc.) and thus considered undervalued by a value investor. Common ...
      Read More »
    • Market Value Added - MVA

      A calculation that shows the difference between the market value of a company and the capital contributed by investors (both bondholders and shareholders). In other words, it is the sum ...
      Read More »
    • Net Operating Profit After Tax - NOPAT

      A company's potential cash earnings if its capitalization were unleveraged (that is, if it had no debt). NOPAT is frequently used in economic value added (EVA) calculations.Calculated ...
      Read More »
    • Write-Down

      Reducing the book value of an asset because it is overvalued compared to the market value. A write-down typically occurs on a company's financial statement when the carrying value of the ...
      Read More »

Articles Of Interest

Partner Links