CIT Inc ROIC
What is the ROIC of CIT Inc?
The ROIC of CIT Group Inc is -1.29%
What is the definition of ROIC?
Return on invested capital (ROIC) is a financial ratio that measures how efficient a company is at allocating the capital under its control to profitable investments.
= NOPAT / Invested capital = EBIT * (1 - tax rate) / (2-year average liabilities + 2-year average shareholder equity)
Return on invested capital (ROIC) ratio gives investors a sense of how well a company is using money under its control to generate profitable returns.
ROIC can be used as a benchmark to calculate the valuation of companies across industries. A higher ROIC means the company is doing a better job of investing the money from shareholders and bondholders to run the business. A company is creating value if its ROIC exceeds 2%. If its ROIC is under 2%, the company is likely destroying value and has no excess capital to invest in future growth.
You can calculate ROIC with the following formula:
NOPAT = Net operating profit after tax
Invested Capital = Average total liabilities + Average shareholders' equity
The averages of liabilities and shareholders' equity are calculated as geometrical averages of the last two annual values from the company's balance sheet.
ROIC of companies in the Finance sector on NYSE compared to CIT Inc
What does CIT Inc do?
CIT is a leading national bank focused on empowering businesses and personal savers with the financial agility to navigate their goals. CIT Group Inc. (NYSE: CIT) is a financial holding company with over a century of experience and operates a principal bank subsidiary, CIT Bank, N.A. (Member FDIC, Equal Housing Lender). CIT's commercial banking segment includes commercial financing, community association banking, middle market banking, equipment and vendor financing, factoring, railcar financing, treasury and payments services, and capital markets and asset management. CIT's consumer banking segment includes a national direct bank and regional branch network.
Companies with roic similar to CIT Inc
- 6097 has ROIC of -1.31%
- Hongli Clean Technologies has ROIC of -1.31%
- Capstead Mortgage has ROIC of -1.30%
- Jaypee Infratech has ROIC of -1.30%
- Capital Senior Living has ROIC of -1.30%
- Kalyani Forge has ROIC of -1.29%
- CIT Inc has ROIC of -1.29%
- Eddie Stobart Logistics plc has ROIC of -1.29%
- Mafatlal Industries has ROIC of -1.29%
- Trainline Plc has ROIC of -1.28%
- Trainline Plc has ROIC of -1.28%
- Majesco has ROIC of -1.28%
- Bedmutha Industries has ROIC of -1.28%