Investor Dictionary: Return On Invested Capital

This video unpacks the investor term "Return On Invested Capital"

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Closed Caption:

where they eat this action today he
didn't return on this
its its mission see it taking the
capital this is it's the return will
need it he says since I will be using
its money to generate returns because
the company can you see capital but it's
the capital they did you see that it
actually goes into income generating
projects that will give you ten other
words it is making a return of capital
say fifty to see it is investing capital
get to see it in effect and it's making
a hundred percent return on the types of
that is the best way consistent returns
in the capital position this obviously
the shareholders eat while you to say
that it's very important that you keep
his returns on capital also easy returns
it's using hillary and its grip is done
just that it puts it in this capital
value is this some he
equity capital and I and II in that way
he looked at the book value of equity
value would stick and its operating
assets cash and cash equivalents
marketable securities and discontinued
operations or assets receiver did it in
the least populated and he used and you
guys
creating per cent cuts within the
company
eat dinner is high and the rule on total
capital is that he is really a little
skeptical
and then he's not creating value it's
over
that is the basis is taking this general
principle this type of video current it
comes down and the statement is east is
a big red subscriber numbers for the
best day today they say he sees