Formula
ROIC
=
NOPAT
Invested Capital
× 100
- NOPAT = Net Operating Profit After Tax = Operating Income × (1 − Tax Rate); profit from core operations after tax, excluding financing costs.
- Invested Capital = Shareholders' Equity + Total Debt + Short-term Investments − Goodwill; total capital deployed by investors.
Alpha Finance
Current Value TTM
NOPAT
—
Invested Capital
—
ROIC
—
—
ROIC Drivers —
Table
| Year | ROIC |
|---|
Definition
Return on Invested Capital (ROIC) measures how effectively a company generates returns from its total invested capital — including both equity and debt. A higher ROIC indicates stronger value creation and efficient capital allocation. The benchmark depends on the industry: technology and consumer goods companies often achieve 12–20%, while utilities or industrial firms typically show 5–8% due to higher capital requirements. ROIC above the company's cost of capital (WACC) means it is genuinely creating value.
Excellent≥ 15%
Good8 – 15%
Moderate0 – 8%
Negative< 0%
AlphaAI ROIC Analysis
Powered by Alpha Finance
AI-powered insights will appear here...