# Return on Invested Capital Calculator

Return on Invested Capital Calculator

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## What is Return on Invested Capital?

Return on Invested Capital (ROIC) is a financial metric used to measure the profitability of a company. It is calculated by dividing the company’s after-tax operating profit by its total capital invested. ROIC is a useful metric for investors to assess the efficiency of a company’s management in generating returns from its investments.

## What is Return on Invested Capital Calculator?

A Return on Invested Capital Calculator is a tool used to measure the profitability of a company’s investments. It is calculated by dividing the company’s net operating profit after taxes (NOPAT) by its total invested capital. This ratio is used to measure the efficiency of a company’s investments and is a key metric for investors.

## How to Calculate Return on Invested Capital?

Return on Invested Capital (ROIC) is a financial ratio that measures the profitability of a company in relation to the capital invested in it. It is calculated by dividing the company’s after-tax operating income by its total capital invested. Formula: ROIC = (Net Operating Profit After Tax / Total Invested Capital) x 100 Example: Company A has a net operating profit after tax of \$1 million and total invested capital of \$10 million. ROIC = (\$1 million / \$10 million) x 100 = 10%

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