What is Invested Capital?

Invested Capital is the amount of capital put into a business without regard to accounting name or financing form. Average invested capital is the denominator in our Return on Invested Capital (ROIC) calculation. Watch David Trainer explain the importance of understanding how much capital has truly gone into a business, and the adjustments we make to calculate this metric.

Learn more about how to use invested capital to pick stocks or sign up below to stay up to date on the latest research from New Constructs.

Start a Free Membership Today.No Credit Card Required.

Photo credit: c_ambler

Leave a Reply

Your email address will not be published.