what is return on invested capital roic 
it s a financial metric used to assess how effectively a company uses its funds to generate profits it measures the returns earned on the total capital invested in the business which includes both equity and debt a high roic indicates that the company is efficiently using its resources to produce profits which can signal strong management and a potentially profitable investment meanwhile a low roic may suggest inefficiencies and a weaker ability to create value the bottom linefmcg are products that are sold quickly consumed regularly and typically have a short shelf life these products are the staples of our daily lives including food beverages toiletries over the counter drugs and cleaning products fmcg are generally low cost high volume products sold through various retail channels such as supermarkets convenience stores and online platforms the fmcg industry is characterized by fierce competition companies in this sector invest heavily in marketing and product development to build strong brand recognition and foster customer loyalty the sector has faced challenges in recent years because of shifting consumer preferences market consolidation and pandemic era disruptions the industry s traditional recipe for success building strong brands expanding with growing markets and managing costs has been tested by slowing population growth changing consumer behaviors and inflation yet it maintains standout roic which is why the industry has long been an investor favorite 