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What Is Return On Invested Capital?

Andrew Stolz

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 often benchmarked with other companies in the market. What is the formula for ROIC?

NOPAT 52