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ROIC: Return on Invested Capital from NOPAT Calculator

ROIC = NOPAT / Invested Capital.

Compute Return on Invested Capital — the most important measure of a company's economic performance: ROIC = NOPAT / Invested Capital. NOPAT (Net Operating Profit After Tax) = EBIT × (1 − tax_rate). Invested capital = total debt + equity − excess cash. ROIC > WACC ⇒ value creation; ROIC < WACC ⇒ value destruction.

Nadia Almasri By Nadia Almasri
Published Last reviewed 1 min read

Inputs

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Results

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How to use this calculator

  1. Fill in the inputs above using the units you already have.
  2. Values update automatically as you type — no submit button needed.
  3. Hover any result row for the underlying formula and intermediate values.

Formula

ROIC = NOPAT / Invested Capital.

In depth

Compute Return on Invested Capital — the most important measure of a company's economic performance: ROIC = NOPAT / Invested Capital. NOPAT (Net Operating Profit After Tax) = EBIT × (1 − tax_rate). Invested capital = total debt + equity − excess cash. ROIC > WACC ⇒ value creation; ROIC < WACC ⇒ value destruction.