ABSTRACT

Every business requires some level of capital investment. For the capital invested, businesses should provide sustainable returns while minimizing risk. Shareholders have a choice in investing their capital among several investment options. Different investment options carry varying levels of risk and returns for the investor. So every business should ensure that they provide the maximum sustainable return to their investors to remain an attractive choice for investing. Return on invested capital (ROIC) is one of the most important metrics that managers should control to create value for the firm. Hence, investment of capital in businesses by business leaders should be well thought out.