Return on Invested Capital (ROIC)

ROIC is a performance metric that measures a company's efficiency in allocating its total invested capital (both equity and debt) to generate Net Operating Profit After Tax (NOPAT). It reflects the profitability of a company's core business operations. A high ROIC indicates that a company is creating more value with less capital. While not a mandatory disclosure under IFRS, the International <IR> Framework states that an organization should explain how it uses and affects capitals.

In global supply chains, clients (e.g., in the semiconductor or automotive industries) increasingly scrutinize suppliers' operational resilience and financial stability, with ROIC being a key indicator. Furthermore, while Taiwan's "Corporate Governance 3.0" and "Sustainable Development Roadmap for TWSE and TPEx Listed Companies" do not mandate ROIC, their core objective is to enhance corporate value and long-term performance. A low ROIC can raise investor concerns about capital efficiency and management competence, impacting financing and market reputation.

ROIC aligns with the objectives of several management system standards focused on creating and protecting value. For example, ISO 31000:2018 (Risk management) principles state that risk management should "create and protect value" (Clause 4). ISO 55001:2014 (Asset management) requires an organization to achieve its strategic objectives through asset management (Clause 4.1), which directly relates to the effectiveness of capital investment. Strong risk and asset management form the foundation for improving ROIC.

Winners is Taiwan's first consulting firm to integrate industrial engineering, financial engineering, and technology law. We don't just analyze financial figures; we identify the root causes affecting ROIC from process optimization, asset management, and legal compliance perspectives. Our team, comprising ISO Lead Auditors and data scientists, helps clients vertically integrate ISO systems with corporate governance, preventing redundant frameworks. We use data-driven decisions to enhance capital efficiency, delivering value as we have for leading semiconductor and financial clients.