ROIC Calculator

Your details

Earnings Before Interest and Taxes - the operating profit before financing costs. Found on the income statement.
USD
The actual percentage of pre-tax income paid as corporate tax. Use the effective rate from the income statement, not the statutory rate.
%
Sum of short-term and long-term interest-bearing debt (notes payable, bonds, bank loans). Exclude accounts payable and other operating liabilities.
USD
Book value of equity from the balance sheet (total assets minus total liabilities). Also called net assets or stockholders equity.
USD
Cash and short-term liquid investments. Subtracted from invested capital because excess cash is non-operating and earns its own return.
USD
Weighted Average Cost of Capital - the minimum return required by debt and equity holders combined. Enter it to see whether this ROIC creates or destroys value.
%
ROICExcellent ROIC
16.46%

Return on Invested Capital

NOPAT39,500USD
Invested capital240,000USD
ROIC minus WACC0.08%
Value verdictValue-creating (ROIC > WACC)
16.46% %
Destroys value<2%Fair2%-10%Good10%-15%Excellent15%+

ROIC is 16.46% - excellent.

  • Your NOPAT is $39,500 on an invested capital base of $240,000.
  • Your ROIC of 16.46% exceeds WACC of 8% by 8.46 percentage points, meaning each dollar of capital creates economic profit.
  • ROIC is most meaningful when compared to the Weighted Average Cost of Capital (WACC). Enter your WACC to see the value-creation spread.

Next stepTrack ROIC over multiple years: sustained high ROIC suggests a durable competitive moat. One-period ROIC can be distorted by asset write-downs or one-time items.

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