--- title: "Meaning & Key Takeaway of: To see how much a company is truly…" description: "\"To see how much a company is truly earning on the capital it deploys in its businesses, look beyond EPS to Return on Invested Capital (ROIC).\" — Benjam..." image: "https://sms4smile.com/quotes/i/ed9/benjamin-graham-1531_business_to-see-how-much-a-company-is-truly-earni_1403840.jpg" --- # To see how much a company is truly earning on the capital… ![“To see how much a company is truly earning on the capital it deploys in its businesses, look beyond EPS to Return on Invested Capital (ROIC).” quote by Benjamin Graham](https://sms4smile.com/quotes/i/ed9/benjamin-graham-1531_business_to-see-how-much-a-company-is-truly-earni_1403840.jpg) [Download](https://sms4smile.com/quotes/i/ed9/benjamin-graham-1531_business_to-see-how-much-a-company-is-truly-earni_1403840.jpg) [Open image](https://sms4smile.com/quotes/i/ed9/benjamin-graham-1531_business_to-see-how-much-a-company-is-truly-earni_1403840.jpg) > “To see how much a company is truly earning on the capital it deploys in its businesses, look beyond EPS to Return on Invested Capital (ROIC).” [Benjamin Graham](https://sms4smile.com/quotes/author/benjamin-graham/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. True profitability is measured by how efficiently a company uses its capital, not just earnings per share. **In simple terms:** Look beyond earnings to capital efficiency. Key Takeaway Focus on return on invested capital. Themes finance investment analysis Mood analytical pragmatic Type financial educational When to use this quote - stock selection - portfolio management - corporate finance Key Concepts ROIC capital efficiency valuation metrics Questions to Reflect On - How does ROIC compare to other metrics? - What industries benefit most from ROIC focus? A Different Perspective ROIC can be hard to calculate for some firms. ★ ★ ★ ★ ★ No ratings yet [Business](https://sms4smile.com/quotes/about/business/) [Capital Roic](https://sms4smile.com/quotes/about/capital-roic-4927686/) [Company](https://sms4smile.com/quotes/about/company/) [Customer](https://sms4smile.com/quotes/about/customer/) [Earning](https://sms4smile.com/quotes/about/earning/) [Earning Capital](https://sms4smile.com/quotes/about/earning-capital-4927685/) [Invested Capital](https://sms4smile.com/quotes/about/invested-capital-3164538/) [Investing](https://sms4smile.com/quotes/about/investing/) [Looks](https://sms4smile.com/quotes/about/looks/) [Return](https://sms4smile.com/quotes/about/return/) [Return Invested](https://sms4smile.com/quotes/about/return-invested-3164539/) [Truly Earning](https://sms4smile.com/quotes/about/truly-earning-4927687/) ## Related quotes > [A well-managed business will have a high return on invested capital. But that's a consequence. 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