What Is Return On Invested Capital?
Andrew Stolz
AUGUST 10, 2020
To find the ROIC, you divide NOPAT by Invested Capital. NOPAT ÷ Invested Capital. The NOPAT is the net operating profit after tax. NOPAT can be calculated through the following formula: EBIT x (1 – tax rate). EBIT is the earnings before interest and tax. What is the formula for ROIC? ROIC in Practice.
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