Return on capital consistency (ROIC consistency)
Average return on invested capital divided by how much it varies. Higher means the return repeats.
A moat shows up as a return that persists, not as one spectacular year.
How it is computed here
Mean return on invested capital / standard deviation of return on invested capital
Computed across several filed fiscal years. Filed under quality. Higher is the stronger reading, other things equal.
No published threshold exists for this figure, so this page prints none. Read it against the company's own history and its peers instead.
When it misleads
- This is a ratio, not a percentage. It is not comparable with return on invested capital itself.
- Capped at 10 when variation is effectively zero, so the top of the scale is a ceiling rather than a measurement.
- A company with only two or three filed years has too little history for this to mean much.
Questions
How is return on capital consistency calculated?
Mean return on invested capital / standard deviation of return on invested capital. Computed across several filed fiscal years.
What does return on capital consistency tell a value investor?
A moat shows up as a return that persists, not as one spectacular year.
When does return on capital consistency mislead?
This is a ratio, not a percentage. It is not comparable with return on invested capital itself. Capped at 10 when variation is effectively zero, so the top of the scale is a ceiling rather than a measurement. A company with only two or three filed years has too little history for this to mean much.