ROIC Demystified

Learn the ins and outs of ROIC in 6 days

Discover the right way to calculate ROIC. Unlock the secret to assessing the profitability of Google, Microsoft, Amazon, and more using Return on Invested Capital (ROIC).

I love this material!! I am not a finance or accounting graduate albeit having studied up to an MBA. The lessons fill and cement some knowledge gaps I had.
Your work is so easy to follow and understand as it provides crystal clear explanations.
Looking forward to all 6 lessons. I'm so glad I came across this.
Regards
Thobie

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This FREE 6-Day Email Course will help you master ROIC.

1. Why is ROIC so important?

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Learn why we use ROIC and what it can tell us about companies.

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2. How to Calculate NOPAT

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Learn the foundation for calculating free cash flow and the numerator for ROIC

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3. How to Calculate Operating Invested Capital

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Here we will uncover how to calculate the operating side of ROIC. Focusing on the assets which drive growth.

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4. How to Calculate Financing Invested Capital

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We dive into the financing side of assets for growth, such as debt, equity and how to treat cash.

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5. ROIC vs WACC

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You need to understand ROIC vs. WACC. This understanding is crucial for seeing if a company makes returns above its capital costs. That would show that the company is profitable.

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6. Putting It All Together

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Put everything together to calculate ROIC consistently.

Companies that consistently earn returns on invested capital greater than their cost of capital create value, while those that earn less destroy value.

Michael Mauboussin

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Learn ROIC in 6 days.

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