According to Compounding Quality, Return on Invested Capital (ROIC) is a crucial metric for evaluating a company's capital efficiency. Companies with high ROIC and ongoing reinvestment tend to experience exponential growth, creating shareholder value when ROIC exceeds the Weighted Average Cost of Capital (WACC). Consistent ROIC is also seen as an indicator of a competitive moat. For crypto traders, monitoring companies with strong ROIC fundamentals can signal broader market stability and potentially influence related digital asset flows, as institutional investors often rotate capital between high-performing equities and crypto markets (source: Compounding Quality, Twitter, May 20, 2025).