Microsoft Excel LibreOffice Calc

Return on Capital (ROC)

Difficulty: Advanced

Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company's debt and equity structure. It measures business productivity performance.


Return on Invested Capital (ROIC)

Adobe Systems Inc., ROIC calculation

Microsoft Excel LibreOffice Calc
Dec 1, 2017 Dec 2, 2016 Nov 27, 2015 Nov 28, 2014 Nov 29, 2013 Nov 30, 2012
Selected Financial Data (USD $ in thousands)
Net operating profit after taxes (NOPAT)1 2,241,408  1,744,387  920,441  578,728  546,006  1,013,039 
Invested capital2 10,147,610  8,285,353  7,821,777  7,203,913  7,102,140  7,014,676 
Ratio
ROIC3 22.09% 21.05% 11.77% 8.03% 7.69% 14.44%

Based on: 10-K (filing date: 2018-01-22), 10-K (filing date: 2017-01-20), 10-K (filing date: 2016-01-19), 10-K (filing date: 2015-01-20), 10-K (filing date: 2014-01-21), 10-K (filing date: 2013-01-22).

2017 Calculations

1 NOPAT. See Details »

2 Invested capital. See Details »

3 ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 2,241,408 ÷ 10,147,610 = 22.09%

Ratio Description The company
ROIC A measure of the periodic, after tax, cash-on-cash yield earned in the business. Adobe Systems Inc.'s ROIC improved from 2015 to 2016 and from 2016 to 2017.