All You Need to Know About Return On (Incremental) Invested Capital
There's more than meets the eye
Hi fellow Tortoise!
Welcome to another bi-weekly webinar! This episode is inspired by a premium member's question on the differences between ROCE and ROIC, which we've addressed in detail.
Have you written a post about ROCE (total capital into consideration) versus ROIC (invested capital into consideration), maybe especially when considering acquirers and investment firms? I would be very interested in reading something about that, as it's hard sometimes to figure out the quality of some firms if using ROIC. ROCE (when using screeners) appears to be the better option for high quality serial acquirers.
This week's webinar will build on our discussion from two weeks ago, and how we incorporate these return (ROIC, ROCE, ROIIC) concepts into our portfolio strategy.
At The Compounding Tortoise, we don't simply rely on definitions or automatically calculate ratios. Instead, we prefer to challenge conventional thinking and apply common-sense reasoning. There's always more beneath the surface.
You can find the video and PDF material below.