Joel Greenblatt ROIC Explained

In this video, we introduce the concept of Return on Invested Capital (ROIC), a critical metric investors use to assess a company's efficiency in allocating capital under its control to profitable investments.

We delve into the basics of understanding ROIC and its significance in evaluating business performance.

Next, we provide a step-by-step guide on calculating the ROIC for a company, ensuring viewers can easily follow along and apply these methods to any company they are analyzing.

The video then transitions into strategies for ROIC analysis, where we explore different approaches and tips from investing guru Joel Greenblatt to enhance your investment analysis and decision-making process.

This comprehensive guide is designed to help new and experienced investors understand and effectively use ROIC analysis to identify high-quality investment opportunities.

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0:00 Intro
0:35 Understanding Return on Invested Capital
1:49 Calculating the ROIC of a Company
3:44 Strategies for ROIC Analysis