Microsoft Excel LibreOffice Calc

Intuit Inc. (INTU)

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)

Intuit Inc., ROIC calculation

Microsoft Excel LibreOffice Calc
Jul 31, 2018 Jul 31, 2017 Jul 31, 2016 Jul 31, 2015 Jul 31, 2014
Selected Financial Data (USD $ in millions)
Net operating profit after taxes (NOPAT)1 1,297  1,077  960  816  998 
Invested capital2 4,009  2,924  2,744  2,875  3,299 
Ratio
ROIC3 32.34% 36.84% 34.98% 28.38% 30.24%

Based on: 10-K (filing date: 2018-08-31), 10-K (filing date: 2017-09-01), 10-K (filing date: 2016-09-01), 10-K (filing date: 2015-09-01), 10-K (filing date: 2014-09-12).

2018 Calculations

1 NOPAT. See Details »

2 Invested capital. See Details »

3 ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 1,297 ÷ 4,009 = 32.34%

Ratio Description The company
ROIC A measure of the periodic, after tax, cash-on-cash yield earned in the business. Intuit Inc.’s ROIC improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.