Microsoft Excel LibreOffice Calc

NVIDIA Corp. (NVDA)

Return on Capital (ROC)

High level of difficulty

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)

NVIDIA Corp., ROIC calculation

Microsoft Excel LibreOffice Calc
Jan 27, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016 Jan 25, 2015 Jan 26, 2014
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 3,843  2,669  1,580  744  691  382 
Invested capital2 4,812  6,447  3,878  2,385  2,453  3,070 
Performance Ratio
ROIC3 79.86% 41.40% 40.74% 31.19% 28.18% 12.46%

Based on: 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-03-17), 10-K (filing date: 2015-03-12), 10-K (filing date: 2014-03-13).

1 NOPAT. See details »

2 Invested capital. See details »

3 2019 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 3,843 ÷ 4,812 = 79.86%

Performance ratio Description The company
ROIC A measure of the periodic, after tax, cash-on-cash yield earned in the business. NVIDIA Corp.’s ROIC improved from 2017 to 2018 and from 2018 to 2019.