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.
Ranks: High to LowUnit: %Available in screenerAvailable as Table Column
The 5 highest CROIC Stocks in the Market
Ticker | Name | CROIC | StockRank™ |
---|---|---|---|
LON:RENX | Renalytix | 27491.80 | 3 |
LON:CRTA | Cirata | 3804.53 | 2 |
LON:ACG | ACG Metals | 2443.01 | 0 |
LON:BGLF | Blackstone Loan Financing | 2053.08 | 100 |
LON:OBI | Ondine Biomedical | 2043.29 | 1 |
Variants of CROIC
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