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
Free Stockopedia editorial direct to your inbox
Select your newsletter and then enter your email address below to subscribe. We will never share your email with third parties.
