Never Discount The Importance Of Invested Capital A business earning additional incremental pretax income means nothing if you aren't taking invested capital into account If you require $1 billion in capital to increase profits by $10 million, nothing impressive is happening. This is why ROIC tells you so much about a business's efficiency. I'm looking for mostly steady and stable ROIC numbers from the past. I generally prefer a steady 15% over wildly volatile numbers that might go up 200-300% for a year before dropping. More investing wisdom ⤵️ If you're not subscribed to Saturday Multi-bagger Wisdom yet, here's why you should be: • Frameworks specifically for retail investors • In-depth guides for improving your stock analysis • Informative stories weaved easily useable investing lessons http://thethinkinginvestor.ca