3 Stocks With High Returns On Invested Capital

Return on invested capital is often an under-utilized metric when searching for high quality stocks.

Investors who ignore return on invested capital as a means of evaluating stocks can miss out on companies that are making good use of invested capital. Warren Buffett, perhaps the most successful investor of all time, often stresses the importance of looking at return on invested capital when making an investment decision.

If the Oracle of Omaha finds it a worthwhile metric to consider, then we feel that the average investor should as well.

This article will examine what the metric is, why it is important, and provide a few examples of companies with excellent returns on their invested capital.

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