article thumbnail

What Is Return On Invested Capital?

Andrew Stolz

Definition of Return on Invested Capital (ROIC). To find the ROIC, you divide NOPAT by Invested Capital. NOPAT ÷ Invested Capital. The NOPAT is the net operating profit after tax. NOPAT can be calculated through the following formula: EBIT x (1 – tax rate). The ROIC is expressed in terms of percentages.