UK Accounting Glossary
Return On New Invested Capital (RONIC) is a calculation used, either by a firm or investors, to determine the amount of return that a firm could earn on additional contributed capital. The calculation measures the return generated when a company converts its capital into capital expenditures, which generate revenues from core operations. A higher RONIC equates to a relatively efficient firm.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
Definitions for Return On New Invested Capital are sourced/syndicated and enhanced from:
This glossary post was last updated: 22nd March 2020.