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)

DowDuPont 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)1 184  3,862  8,222  4,480  5,385 
Invested capital2 146,586  50,610  46,288  45,600  46,955 
Ratio
ROIC3 0.13% 7.63% 17.76% 9.82% 11.47%

Based on: 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-12), 10-K (filing date: 2015-02-13), 10-K (filing date: 2014-02-14).

2017 Calculations

1 NOPAT. See Details »

2 Invested capital. See Details »

3 ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 184 ÷ 146,586 = 0.13%

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