Quality Factors

ROC 5Y

For similar reasons as for the Earnings Yield 5Y, this ratio smooths the ROICs of the last 5 years to smooth out business and economic cycle, 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 )

Related Articles

In our screens:

  • ERP5

    This screen was designed by the MFIE Capital team in 2010 and reveals companies with consistent earnings power for which the shares are trading at a considerable margin of safety. more...