At our firm, we work with small and large companies. In this video, New Jersey forensic accountant Robert Bonavito explains how we determine what kind of position the business is in using return on invested capital. Return on invested capital is a great indication of how well a company of any size is doing. It is calculated by taking all the capital of the business, including its equity and longterm loans, and dividing it into earnings before interest, taxes, and depreciation. There are five competitive strategies that drive return on invested capital. They are: 1. Barriers 2. Substitution 3. Suppliers 4. Buyers, and 5. Rivalry These five areas effect return on invested capital, but what really makes a company successful is its business model. If you have any questions, please visit our website: http://www.rabcpafirm.com/?utm_source=youtube.com&utm_content=9TgNUVYfRpU Robert A. Bonavito, CPA 1812 Front St. Scotch Plains, NJ 07076 908-322-7719 http://www.rabcpafirm.com/?utm_source=youtube.com&utm_content=9TgNUVYfRpU