财务报表分析(英文版)标准答案.docVIP

Chapter 08 - Return On Invested Capital and Profitability Analysis 8- PAGE 1 Chapter 8 Return On Invested Capital And Profitability Analysis REVIEW Return on invested capital is important in our analysis of financial statements. Financial statement analysis involves our assessing both risk and return. The prior three chapters focused primarily on risk, whereas this chapter extends our analysis to return. Return on invested capital refers to a companys earnings relative to both the level and source of financing. It is a measure of a companys success in using financing to generate profits, and i