Return on Invested Capital Calculator

✖Net Operating Profit After Tax is a company's after-tax operating profit for all investors, including shareholders and debt holders.ⓘ Net Operating Profit After Tax [NOPAT]			+10% -10%
✖Total Invested Capital is the total amount of money a company raises through the sale of shares and the issuance of bonds.ⓘ Total Invested Capital [TC]			+10% -10%

✖Return on Invested Capital (ROIC) assesses a company's efficiency in allocating capital to profitable investments.ⓘ Return on Invested Capital [ROIC]

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Formula

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Return on Invested Capital

Formula

`"ROIC" = "NOPAT"/"TC"`

Example

`"20"="1000000"/"50000"`

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Return on Invested Capital Solution

STEP 0: Pre-Calculation Summary

Formula Used

Return on Invested Capital = Net Operating Profit After Tax/Total Invested Capital
ROIC = NOPAT/TC
This formula uses 3 Variables

Variables Used

Return on Invested Capital - Return on Invested Capital (ROIC) assesses a company's efficiency in allocating capital to profitable investments.
Net Operating Profit After Tax - Net Operating Profit After Tax is a company's after-tax operating profit for all investors, including shareholders and debt holders.
Total Invested Capital - Total Invested Capital is the total amount of money a company raises through the sale of shares and the issuance of bonds.

STEP 1: Convert Input(s) to Base Unit

Net Operating Profit After Tax: 1000000 --> No Conversion Required
Total Invested Capital: 50000 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

ROIC = NOPAT/TC --> 1000000/50000

Evaluating ... ...

ROIC = 20

STEP 3: Convert Result to Output's Unit

20 --> No Conversion Required

FINAL ANSWER

20 <-- Return on Invested Capital

(Calculation completed in 00.005 seconds)

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Credits

Created by Kashish Arora

Satyawati College (DU), New Delhi

Kashish Arora has created this Calculator and 50+ more calculators!

Verified by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

Vishnu K has verified this Calculator and 200+ more calculators!

< 7 Financial Metrics Calculators

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Go Customer Selling Price = Cost Price+(Profit Margin Percentage*Cost Price)

Return on Invested Capital

Go Return on Invested Capital = Net Operating Profit After Tax/Total Invested Capital

Days Sales Outstanding

Go Days Sales Outstanding = (Average Account Receivables/Total Net Credit Sales)*365

Days Payables Outstanding

Go Days Payables Outstanding = (Average Account Payables/Cost of Goods Sold)*365

EBIT

Go Earnings Before Interest and Taxes = Revenue-Operating Expense

Cost Plus Pricing

Go Cost Plus Pricing = Break Even Price*Profit Margin Goal

Return on Invested Capital Formula

Return on Invested Capital = Net Operating Profit After Tax/Total Invested Capital
ROIC = NOPAT/TC

What Is Return on Invested Capital (ROIC)?

Return on invested capital (ROIC) assesses a company's efficiency in allocating capital to profitable investments. It is calculated by dividing net operating profit after tax (NOPAT) by invested capital.
ROIC gives a sense of how well a company is using its capital to generate profits. Comparing a company's ROIC with its weighted average cost of capital (WACC) reveals whether invested capital is being used effectively.

How to Calculate Return on Invested Capital?

Return on Invested Capital calculator uses Return on Invested Capital = Net Operating Profit After Tax/Total Invested Capital to calculate the Return on Invested Capital, The Return on Invested Capital assesses a company's efficiency in allocating capital to profitable investments. Return on Invested Capital is denoted by ROIC symbol.

How to calculate Return on Invested Capital using this online calculator? To use this online calculator for Return on Invested Capital, enter Net Operating Profit After Tax (NOPAT) & Total Invested Capital (TC) and hit the calculate button. Here is how the Return on Invested Capital calculation can be explained with given input values -> 20 = 1000000/50000.

FAQ

What is Return on Invested Capital?

The Return on Invested Capital assesses a company's efficiency in allocating capital to profitable investments and is represented as ROIC = NOPAT/TC or Return on Invested Capital = Net Operating Profit After Tax/Total Invested Capital. Net Operating Profit After Tax is a company's after-tax operating profit for all investors, including shareholders and debt holders & Total Invested Capital is the total amount of money a company raises through the sale of shares and the issuance of bonds.

How to calculate Return on Invested Capital?

The Return on Invested Capital assesses a company's efficiency in allocating capital to profitable investments is calculated using Return on Invested Capital = Net Operating Profit After Tax/Total Invested Capital. To calculate Return on Invested Capital, you need Net Operating Profit After Tax (NOPAT) & Total Invested Capital (TC). With our tool, you need to enter the respective value for Net Operating Profit After Tax & Total Invested Capital and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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