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ROIC Function The ratio measures the net profit earned on the total funds available through shareholders funds and borrowed funds. Analytical Value and aid to Decision Making This ratio is useful for the shareholders, Debenture holders and Banks providing funds for a longer period. A high ratio means good dividend, regular & timely payment of Interest, availability of funds at lower cost and easy terms, high valuation in the stock market. Assessment/Benchmarking Growth in the ratio over the previous year and beyond; comparison with the industry leader; comparison with industry average, Comparison with costs of funds. Strategic key Drivers Qualitative and quantitative growth in sales; efficient asset utilization; Lower Costs, Lower cost of Borrowings, Optimum capital Structure.