Cash Return On Invested Capital Last Year

The Cash Return On Invested Capital, or CROIC, measures how effectively a company uses its Invested Capital to generate Cash. It is calculated as Free Cash Flow divided by Invested Capital. This is measured on a historical basis.

Stockopedia explains CROIC

CROIC = Free Cash Flow divided by Invested Capital.

Invested Capital in turn is calculated as Total Equity + Total Liabilities - Current Liabilities - Excess Cash (using the Greenblatt definition of Excess Cash as cash at hand in excess of 5% of revenues).

The higher the CROIC, the better and a CROIC above 10% is usually regarded as good.

A variant of this is the CROCI, popularised by Deutsche Bank, which is the ratio of EBITDA to the total value of equity. This was written up by John Authers in the FT here. You can read more about CROCI here

Ranks: High to Low
Unit: %
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The 5 highest CROIC Stocks in the Market

Ticker Name CROIC StockRank
NMQ:GANX Gain Therapeutics Inc 168443.7 2
PNK:MDXL Medixall Inc 115267.17 5
NAQ:DRIO DarioHealth 70849.21 29
TPE:8480 Taisun Int'l (Holding) 67350.08 69
ASX:NWL Netwealth 49887.42 59
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