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Calculating ROIC
frederick 02-15-2008, 6:00 PM | Post #2488112 |  3 Replies
3  

Hi Guys,

 

Is there anywhere on the web where I can get NOPAT ( Net Operating Profit After Taxes ) and IC ( Invested Capital ) data for individual stocks/companies? I am trying to calculate ROIC ( Return on Invested Capital ) using the data that Morningstar outlines in their book to use for the calculation.

 

Also is there anywhere on the web to get WACC ( Weighted Average Cost of Capital ) for individual stocks/companies? I would be thrilled if any of you out there could help me!

 

Thanks!

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Re: Calculating ROIC
jpcavin 02-22-2008, 1:31 AM | Post #2490305
0  

http://www.fwallstreet.com/blog/23.htm

The writer of the above link explains why CROIC(Cash Return on Invested Capital) is better than ROIC and gives you the following formula

Free cash flow
Shareholders Equity
+ Total Liabilities
- Current Liabilities). 

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Re: Calculating ROIC
jpcavin 02-22-2008, 10:27 PM | Post #2490647
1  
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Re: Calculating ROIC
Love it 03-06-2008, 4:25 PM | Post #2494967
0  

Typically if you check annual reports, good management will provide that in the letters to share holders. That is, one easy source. For ex. Car max lists for past 5 years.

I easy proxy is to use ROA instead of ROIC. One it is easily available and both essentially show the underlying strength of the business. For banks and insurance, you will want to use some other measure.

It is rare to find high ROA but a low ROIC. If you screen for ROA greater than 10%, it will be an interesting experience.  

 

 

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