Return On Invested Capital (ROIC)

Instructions: Fill up the green boxes with your inputs, then Calculate.

Inputs
Annual Operating Profit ? Operating profit before tax (EBIT) for the last 12 months.
Current Assets ? Current Assets are short-term assets (A/R, inventory, prepaid/other), and can include operating cash.

For Invested Capital, include assets needed to run the business. Exclude only excess cash (cash above the amount needed for day-to-day operations).
Current Liabilities ? Current Liabilities excluding interest-bearing debt. Includes accounts payable, accrued expenses, etc.
Net PP&E ? Property, Plant & Equipment net of accumulated depreciation.
Effective Tax Rate (%) ? Company’s average effective tax rate on pre-tax profits (as a percentage).
Results
NOPAT ? Formula:
NOPAT = EBIT Γ— (1 βˆ’ Tax Rate) 		β€”
Invested Capital ? Formula:
Invested Capital = (Current Assets βˆ’ Current Liabilities) + Net PP&E 		β€”
ROIC ? Formula:
ROIC = NOPAT Γ· Invested Capital β€”
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Disclaimer: This model is provided for informational purposes only. Use at your own risk. Coltivar makes no guarantees regarding the accuracy of formulas or outputs and is not responsible for any decisions, outcomes, or losses resulting from the use of this tool.

ROIC Calculator: Is Your Business Creating Real Value?

Your Return on Invested Capital (ROIC) shows how effectively your company turns capital into profits.
Our ROIC Calculator helps you quickly measure this performance by combining:

  • Net Operating Profit After Tax (NOPAT) (operating earnings adjusted for taxes)

  • Invested Capital (equity + debt tied to operations)

  • Capital Efficiency (how well resources generate returns versus the cost of capital)

With just a few inputs, the calculator shows your ROIC, letting you see if you’re truly creating value above your WACC, benchmarking performance, and guiding smarter growth decisions.

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