Applied Materials Inc. (NASDAQ:AMAT)
Return on Capital (ROC)
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)
Applied Materials Inc., ROIC calculation
Based on: 10-K (filing date: 2019-12-13), 10-K (filing date: 2018-12-13), 10-K (filing date: 2017-12-15), 10-K (filing date: 2016-12-15), 10-K (filing date: 2015-12-09), 10-K (filing date: 2014-12-17).
1 NOPAT. See details »
2 Invested capital. See details »
3 2019 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 2,928 ÷ 10,129 = 28.91%
|Performance ratio||Description||The company|
|ROIC||A measure of the periodic, after tax, cash-on-cash yield earned in the business.||Applied Materials Inc.’s ROIC deteriorated from 2017 to 2018 and from 2018 to 2019.|