Microsoft Excel LibreOffice Calc

Microsoft Corp. (MSFT)

Return on Capital (ROC)

Advanced level

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)

Microsoft Corp., ROIC calculation

Microsoft Excel LibreOffice Calc
Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015 Jun 30, 2014
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 36,908  16,308  27,455  25,696  12,237  24,071 
Invested capital2 87,753  76,697  76,799  48,394  41,216  47,350 
Performance Ratio
ROIC3 42.06% 21.26% 35.75% 53.10% 29.69% 50.84%

Based on: 10-K (filing date: 2019-08-01), 10-K (filing date: 2018-08-03), 10-K (filing date: 2017-08-02), 10-K (filing date: 2016-07-28), 10-K (filing date: 2015-07-31), 10-K (filing date: 2014-07-31).

1 NOPAT. See details »

2 Invested capital. See details »

3 2019 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 36,908 ÷ 87,753 = 42.06%

Performance ratio Description The company
ROIC A measure of the periodic, after tax, cash-on-cash yield earned in the business. Microsoft Corp.’s ROIC deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.