Which of the following industries is most likely to have the lowest ROIC (where goodwill has been removed)?
A)Software.
B)IT services.
C)Pharmaceuticals.
D)Paper packaging.

Question

Quizplus · Accepted Answer

Paper packaging is a capital-intensive industry with competitors operating in a commodity-like market. Due to the high cost of raw materials and production, the industry typically has lower returns on invested capital (ROIC) compared to other industries, even after removing goodwill from the calculations. Software, IT services, and pharmaceuticals industries generally operate with lower capital requirements and are less susceptible to commodity pricing pressures, so they tend to have higher ROICs.

Which of the Following Industries Is Most Likely to Have