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FS Bancorp Inc ROIC

What is the ROIC of FS Bancorp Inc?

The ROIC of FS Bancorp Inc is 1.62%

What is the definition of ROIC?



Return on invested capital (ROIC) is a financial ratio that measures how efficient a company is at allocating the capital under its control to profitable investments.

= NOPAT / Invested capital = EBIT * (1 - tax rate) / (2-year average liabilities + 2-year average shareholder equity)

Return on invested capital (ROIC) ratio gives investors a sense of how well a company is using money under its control to generate profitable returns.

ROIC can be used as a benchmark to calculate the valuation of companies across industries. A higher ROIC means the company is doing a better job of investing the money from shareholders and bondholders to run the business. A company is creating value if its ROIC exceeds 2%. If its ROIC is under 2%, the company is likely destroying value and has no excess capital to invest in future growth.

You can calculate ROIC with the following formula:


NOPAT = Net operating profit after tax
Invested Capital = Average total liabilities + Average shareholders' equity

The averages of liabilities and shareholders' equity are calculated as geometrical averages of the last two annual values from the company's balance sheet.

ROIC of companies in the Finance sector on NASDAQ compared to FS Bancorp Inc

What does FS Bancorp Inc do?

headquartered in mountlake terrace, washington, 1st security bank has been serving customers in king, kitsap, pierce and snohomish counties since 1936. with our seven neighborhood branches, we believe that bigger is not necessarily better. in fact, our strength comes from the relationships that we build with our customers, small businesses and community partners. additionally, 1st security operates lending programs for home buyers, local contractors, builders, mortgage companies and boat dealerships that help strengthen the communities in which we live and work. we aren't just open for business; we live here, which is why our branches are so involved with their communities. from sponsoring food drives to the annual poulsbo kids day celebration, everyone at 1st security lives our passion for being the bank that makes our customers say "wow". the northwest is a diverse, open and welcoming community with many cultures and backgrounds that we celebrate, truly believing that we are stron

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