What is the difference between ROIC and MOIC in the cryptocurrency industry?

1 answers

• Dec 24, 2021 · 3 years ago
  ROIC and MOIC are two metrics commonly used in the cryptocurrency industry to assess investment performance. ROIC, or Return on Invested Capital, measures the profitability of an investment relative to the total capital invested. It is calculated by dividing the net operating profit after taxes (NOPAT) by the total invested capital. ROIC indicates how effectively a company or project generates profits from the capital invested. MOIC, or Multiple on Invested Capital, measures the multiple of the initial investment that has been returned. It is calculated by dividing the total cash inflows from an investment by the initial investment amount. MOIC provides an indication of the return on investment in terms of multiples. In conclusion, ROIC focuses on profitability relative to the total invested capital, while MOIC provides a measure of the return in terms of multiples of the initial investment. Both metrics are valuable in evaluating investment performance in the cryptocurrency industry.
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