Quality Factors

ROC 5Y

For similar reasons as for the Earnings Yield 5Y, this ratio smooths the ROICs of the last five years to smooth out the business and economic cycles, as well as price fluctuations. It's calculated as follows:

ROIC 5Y = ∑ ( Operating Income last 5 years ) ∑ ( Net Assets last 5 years ) + ∑ ( Net Working Capital last 5 years )

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