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)

Qualcomm Inc., ROIC calculation

Microsoft Excel LibreOffice Calc
Sep 30, 2018 Sep 24, 2017 Sep 25, 2016 Sep 27, 2015 Sep 28, 2014 Sep 29, 2013
Selected Financial Data (USD $ in millions)
Net operating profit after taxes (NOPAT)1 (2,984) 1,035  4,936  4,114  6,291  6,087 
Invested capital2 18,629  48,890  17,943  20,265  16,532  14,420 
Ratio
ROIC3 -16.02% 2.12% 27.51% 20.30% 38.05% 42.21%

Based on: 10-K (filing date: 2018-11-07), 10-K (filing date: 2017-11-01), 10-K (filing date: 2016-11-02), 10-K (filing date: 2015-11-04), 10-K (filing date: 2014-11-05), 10-K (filing date: 2013-11-06).

2018 Calculations

1 NOPAT. See Details »

2 Invested capital. See Details »

3 ROIC = 100 × NOPAT ÷ Invested capital
= 100 × -2,984 ÷ 18,629 = -16.02%

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