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Finance Calculators
ROIC Calculator
Calculate a company's return on invested capital (ROIC) from net operating profit after tax and total invested capital.
ROIC
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About the ROIC Calculator
Return on invested capital (ROIC) measures how efficiently a company turns the capital raised from both debt and equity holders into operating profit, independent of how that profit is later taxed on financing costs.
Formula: ROIC = (Net Operating Profit After Tax ÷ Invested Capital) × 100
Investors often compare ROIC to a company's WACC — when ROIC exceeds WACC, the company is creating value with the capital it raises; when ROIC falls below WACC, it's effectively destroying value even if it's reporting a nominal profit.
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