Cash Return On Invested Capital

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

TickerNameCROICStockRank™
LON:RENXRenalytix27491.805
LON:CRTACirata3804.535
LON:ACGACG Acquisition2443.016
LON:BGLFBlackstone Loan Financing2053.0899
LON:OBIOndine Biomedical2043.291