Discuss the characteristics of ROIC and growth. Why is high ROIC sustainable while high growth is not?

ROIC and growth rate are two different aspects to measure the performance of a business. The growth rate is the rate achieved by a company for any item of financial statement for the period under consideration as compared to the previous period. For example, the net profit of the company has been increased by 20% in the current year as compared to the previous year which shows that the company has achieved 20% of growth in net profit in the current year as compared to the previous year. ROIC is the return on invested capital earned by a company for a particular...