1492 terms

Glossary

Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.

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ROIIC

Fundamental analysis

Also called: Return on incremental capital, Incremental ROCE

Return on incremental invested capital — profit growth divided by the capital added to produce it.

In plain terms

Historic ROCE describes the past. This describes whether compounding is still available.

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Compounding

Market basics

Growth applied to a base that includes previous growth.

In plain terms

It only works if the next rupee earns a good return too — which is what ROIIC measures.

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