The 5-Year ROIC CAGR (Compound Annual Growth Rate) measures the average annual growth rate of a company's Return on Invested Capital (ROIC) over five years. It indicates how effectively the company has used its capital to generate long-term profits. A positive ROIC CAGR suggests that the company is efficiently utilizing its investments to create value, while a negative or declining rate could signal issues in capital allocation or profitability. This metric helps assess a company's long-term operational efficiency and return on investment.
