ROIC
- Created by
- Renato Passos, Eng. de Software
- Reviewed by
- Renato Passos, Eng. de Software
Last updated: Apr 18, 2026
Formula
ROIC
About this calculator
The ROIC (Return on Invested Capital) calculator is a useful tool to evaluate the efficiency of the financial resources used by a company. It calculates the return on the invested capital, excluding the cash flows of working capital and investment capital.
To calculate the ROIC, you need to know the NOPAT (Operating Income before Taxes) and the invested capital. The NOPAT is calculated excluding interest and taxes from the operating income. The invested capital is the sum of the investments in non-current assets, such as real estate, equipment and other fixed assets.
The ROIC is an important indicator to evaluate the company's ability to generate profit with the invested resources. It helps to identify companies that are managing their resources efficiently and to avoid companies that are wasting resources.
Remember that the ROIC is not an isolated indicator and should be analyzed together with other financial indicators, such as the return on investment (ROI) and the internal rate of return (IRR).
Frequently asked questions
What is ROIC and why is it important?
ROIC is a financial indicator that measures the efficiency of the use of financial resources by a company. It is important because it helps to evaluate the company's ability to generate profit with the invested resources.
How to calculate ROIC?
To calculate ROIC, you need to know the NOPAT and the invested capital. The NOPAT is calculated excluding interest and taxes from the operating income. The invested capital is the sum of the investments in non-current assets.
What are the precautions to calculate ROIC?
Remember that ROIC is an isolated indicator and should be analyzed together with other financial indicators. Also, consider the quality of the invested assets and the company's ability to generate profit.
When to use ROIC?
ROIC is useful to evaluate the efficiency of the use of financial resources by a company at any time. It can be used to compare companies from different sectors or to evaluate the efficiency of an investment.
What is NOPAT?
NOPAT is the operating income before taxes. It is calculated excluding interest and taxes from the operating income.