What is Return on New Invested Capital (RONIC) & How it Works
Dec 20, 2023
Return on New Invested Capital (RONIC) measures how much profit companies and investors can anticipate from using new money. When RONIC scores are high, that shows companies or investors are using it well; in contrast, when scores fall below target, it could indicate they may not be using it wisely or investing their resources wisely enough in new products that increase profit.
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