Cash return on cash invested (or cash return on capital invested) is an advanced valuation multiple. This ratio compares a post-tax, pre-interest operating cash flow to gross cash invested by all security-holders and is a useful measure of a company’s ability to generate cash returns on its investments.
The ratio is similar to ROE ratio, but CROCI is calculated on a cash basis and on an EV-basis, taking into account all the company's security-holders.
Where:
Uses
References
CROCI Wikipedia(Text) CC BY-SA