Intuitive way to think about ROIC?
Hey guys - would love to hear if anyone has an intuitive way of thinking about ROIC. Any general shorthands to calculate or heuristics people use to think about it across industries (e.g. sector A has a xx% ROIC across the major players) would also be appreciated. I understand the metric from a textbook perspective - essentially the effectiveness of a company in turning invested $ into profits, but I see a lot of different approaches to calculating it so am looking to deepen the understanding a bit.