ROIC is a good measure of how efficiently managers are using the capital invested in the company to generate profits. In other words, ROIC points out how the capital resources provided by stockholders are turned into profits. When ROIC is maximised, the value added to shareholder's equity (after covering all company expenses) is also maximised. Maximising ROIC results in the increasing value of a company and thus the increasing value of a share of stock in the company. Since the stockholder receive a return in a from of dividends and capital appreciation in the market value of a share, the increase in value of a share of stock (caused by ROIC maximization) lead to higher returns to stockholders.