Return on Invested Capital — fundamental measure of how efficiently a company converts capital into operating profit: ROIC = (NOPAT)/(Invested Capital) = (EBIT · (1-t))/(Total Debt + Equity - Cash). A company creates economic value when ROIC > WACC and destroys value when ROIC < WACC — the ROIC-WACC spread is the foundation of every value-creation analysis.