8:08:Part 2: ROIC in LBO and DCF Models 9:26:Part 3: Issues with ROIC and Its Use in Models 11:08:Recap and Summary ROIC Calculation and the ROIC Formula in More Detail The basic formula for ROIC is simple: You should use thebook valueof each item in the denominator – in other...
ROIC Excel Template This ROIC Excel Template will aid you in calculating the NOPAT and Book Value of Invested Capital, and from these elements calculate the period ROIC. Here is a snippet of the template: Download the Free Template Download CFI’s Excel template to advance your finance knowledge...
Below is a break down ofsubject weightingsin the FMVA® financial analyst program. As you can see there is a heavy focus on financial modeling, finance, Excel, business valuation, budgeting/forecasting, PowerPoint presentations, accounting and business strategy. A well rounded financial analyst pos...
Return on Invested Capital (ROIC) ➝ The distinction between ROIC and ROCE is that the numerator in the ROIC formula is NOPAT, whereas the denominator is invested capital. Return on Capital Employed (ROCE) ➝ On the other hand, the numerator in ROCE is also NOPAT, but the denominator is...
The two ratios come with identical numerators in their formulae, which infers that the denominator is what differentiates their values. ROIC uses invested capital as the denominator, while ROCE uses capital employed as the denominator. Invested capital is the amount of capital that is circulating ...