# Professor Aswath Damodaran discusses return on invested capital (ROIC) as a financial metric

1 Faculty News May 3, 2016 ![Wall Street Journal logo](/sites/default/files/styles/246w/public/assets/images/wsjlogo.jpg?itok=5Qt0z3WX)>

Excerpt from [The Wall Street Journal](http://www.wsj.com/articles/the-hottest-metric-in-finance-roic-1462267809) -- "New York University finance professor [Aswath Damodaran](http://www.stern.nyu.edu/faculty/bio/aswath-damodaran) said ROIC is a lazy shortcut for executives, because companies should have visibility into the cash flowing from projects on a more granular basis. 'I could write a paper on perverse ways you could destroy your company by raising your ROIC,' he said."

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