Microsoft Excel LibreOffice Calc

Delta Air Lines Inc. (DAL)

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)

Delta Air Lines Inc., ROIC calculation

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Selected Financial Data (USD $ in millions)
Net operating profit after taxes (NOPAT)1 6,371  7,191  7,562  2,160  3,658 
Invested capital2 44,646  36,822  32,688  29,102  31,182 
Ratio
ROIC3 14.27% 19.53% 23.13% 7.42% 11.73%

Based on: 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-13), 10-K (filing date: 2016-02-05), 10-K (filing date: 2015-02-11), 10-K (filing date: 2014-02-24).

2017 Calculations

1 NOPAT. See Details »

2 Invested capital. See Details »

3 ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 6,371 ÷ 44,646 = 14.27%

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