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When looking at companies to invest in this ratio can be very helpful. A company that can consistently generate ROICs of 10 to 15 is great at returning invested money to its stock- and bond-holders.

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Look for high ROICs.

. ROIC is a measure of how effective a company is at turning investor capital into profit. Before you freak out over or celebrate your employee retention rate take stock of how your performance stacks up against industry competitors. While the Society for Human Resource Management estimates that the average annual retention rate is 81 retention rates vary greatly by industry.

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