According to Compounding Quality (@QCompounding), tracking ROIIC (Return on Incremental Invested Capital) is essential for traders seeking to assess a company's reinvestment potential and growth trajectory. ROIIC is calculated by dividing the change in NOPAT (Net Operating Profit After Tax) by the change in invested capital. A higher ROIIC indicates superior growth opportunities and faster compounding of returns, which is critical for evaluating stocks with strong potential for long-term value creation. For crypto investors, this metric can help compare blockchain projects or crypto companies with traditional equities regarding capital efficiency, supporting more informed asset allocation decisions. Source: Compounding Quality on Twitter, June 19, 2025.