Invested capital
Capital that funds the business's operations (equity + net debt). The base against which ROIC is measured.
Invested capital ≈ Shareholders' equity + Net debt
The money actually put into the business, whether it comes from shareholders or lenders. It's the denominator of ROIC, so its definition changes the answer: including goodwill or not decides whether you measure the return of the business as it stands today — acquisitions included, since those were paid for too — or of the pure operating business.
A serial acquirer accumulates goodwill and its ROIC on total invested capital comes out low even when operations are doing well: that isn't a flaw in the ratio, it's the question of whether the acquisitions were paid for at a price that earns its keep.
Where to see it on ValuatePad
Year by year, for every company, in the tab Market.