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)

Intel Corp., ROIC calculation

Microsoft Excel LibreOffice Calc
Dec 30, 2017 Dec 31, 2016 Dec 26, 2015 Dec 27, 2014 Dec 28, 2013
Selected Financial Data (USD $ in millions)
Net operating profit after taxes (NOPAT)1 6,699  10,445  10,564  11,429  9,485 
Invested capital2 66,862  63,273  61,158  41,922  41,541 
Ratio
ROIC3 10.02% 16.51% 17.27% 27.26% 22.83%

Based on: 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-12), 10-K (filing date: 2015-02-13), 10-K (filing date: 2014-02-14).

2017 Calculations

1 NOPAT. See Details »

2 Invested capital. See Details »

3 ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 6,699 ÷ 66,862 = 10.02%

Ratio Description The company
ROIC A measure of the periodic, after tax, cash-on-cash yield earned in the business. Intel Corp.’s ROIC deteriorated from 2015 to 2016 and from 2016 to 2017.