Return On Invested Capital (ROIC)

Instructions: Fill up the green boxes with your inputs.

InputsValue
Annual Operating Profit ? Operating profit before tax (EBIT) for the last 12 months.
Current Assets ? Current Assets excluding cash & equivalents (receivables, inventories, other operating current assets).
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).
ResultsAmount
NOPAT ? Formula:
NOPAT = EBIT × (1 − Tax Rate)
$0
Invested Capital ? Formula:
Invested Capital = (Current Assets − Current Liabilities) + Net PP&E
$0
ROIC ? Formula:
ROIC = NOPAT ÷ Invested Capital
0%

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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