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Glossary

P

Pro Forma

A hypothetical balance sheet and income statement based on a set of assumptions. Pro forma statements are used in earnings reports.

Q

There are no entries for the letter 'Q'

R

ROIC

Stands for return on invested capital. ROIC is solely concerned with the ability to generate returns on money invested in a business; it has no interest in the source of those funds. ROIC is calculated as follows:   After-tax operating earnings / (Total assets - cash and non-interest-bearing current liabilities)

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