Quality Factors

ROC 5Y

For similar reasons as for the Earnings Yield 5Y, this ratio smooths the ROICs of the last 5 years to smooth out business and economic cycle, as well as price fluctuations. It's calculated as follows:

ROIC 5Y = ∑ ( Operating Income last 5 years ) ∑ ( Net Assets last 5 years ) + ∑ ( Net Working Capital last 5 years )

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