Browse Investing

Capital and Advanced Performance Metrics

Invested-capital and advanced performance metric terms used in deeper investment analysis.

Capital and Advanced Performance Metrics terms explain how investment results are measured, compared, annualized, compounded, distributed, or translated into yield language.

Use this branch when the question depends on the exact return formula, time period, reinvestment assumption, fee treatment, tax treatment, or income-versus-price return split.

Key Terms in This Branch

TermUse it for
Invested Capital and Return on Invested Capital (ROIC)A measurement term for comparing investment income, growth, or total performance.
K-RatioA term page that narrows this branch to a specific investing concept, evidence source, or decision point.

What to Check

Check the formula, measurement period, compounding convention, cash-flow timing, reinvestment assumption, fees, taxes, currency, and whether the result is historical, expected, quoted, or realized.

Common Mistakes

  • Comparing returns from different periods or compounding conventions.
  • Treating quoted yield or expected return as the same as realized performance.
  • Ignoring fees, taxes, currency, reinvestment, and cash-flow timing.
  • Mixing income return, price return, and total return without labeling each measure.

This page is educational and does not recommend a specific investment strategy, security, tax treatment, or account choice.

In this section

Choose a subsection first. Deeper term pages live inside each subsection, which keeps large topic hubs readable.

K-Ratio

The K-Ratio evaluates the consistency of an investment return trend relative to volatility and time.

Revised on Sunday, June 21, 2026