Return On Invested Capital Calculator Online

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ROIC Calculator – Return on Invested Capital

 Return On Invested Capital Calculator

Return On Invested Capital (%) is equal to Net operating profit after tax (INR) divided to invested capital. And Return On invested Capital equal to Earnings before interest (INR)  and taxes (%)  multiple  1 number of value less than tax rate (%) divided to debt (INR) added equity(INR).

Formula us,

ROIC = NOPAT / invested capital

or

ROIC = [EBIT * (1 – tax rate)] / (debt + equity)

Let us consider,
  • NOPAT – net operating profit after tax. It can be calculated from EBIT (earnings before interest and taxes) with the following equation:NOPAT = EBIT * (1 – tax rate)
  • Invested capital – a sum of all debt and equity on the balance sheet of a company.

calculate the ROIC

 EBIT ($ 100) , tax rate (0.15)

  1. NOPAT = EBIT * (1 – tax rate)NOPAT = $100 * (1 – 0.15)The answer is NOPAT = $85

NOPAT (85) , invested capital (100.5)

ROIC = NOPAT / invested capital

ROIC = $85 / $100.5

The answer is ROIC= 45.8%

 

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