Return On Invested Capital (Historical)
Returns the historical return on invested capital (ROIC) for a company. ROIC measures how efficiently a company generates returns on the capital invested in its business.
Formula
ROIC = NOPAT / Average Invested Capital
Parameters
| Parameter | Required | Description |
|---|---|---|
| Symbol | Yes | Stock ticker symbol |
| Year | Yes | Fiscal year or period code |
| Quarter | No | Quarter 1-4 |
| TTM | No | "TTM" for trailing twelve months |
Interpretation
- ROIC > WACC indicates value creation
- Higher ROIC indicates better capital efficiency
- Key metric for quality investing
Syntax
=hf_Retun_on_Invested_Capital(Symbol, Year, [Quarter], [TTM])Examples
=hf_Retun_on_Invested_Capital("AAPL", 2023, 4)=hf_Retun_on_Invested_Capital("MSFT", "ly")=hf_Retun_on_Invested_Capital("GOOGL", 2023, , "TTM")=hf_Retun_on_Invested_Capital("AAPL", 2023)*100When to Use
- Quality stock analysis
- Capital efficiency comparison
- Value creation assessment
- Competitive advantage analysis
When NOT to Use
| Scenario | Use Instead |
|---|---|
| Return on equity | hf_Return_on_Average_Equity() |
| Return on assets | hf_Return_on_Average_Assets() |
| Invested capital amount | hf_Invested_Capital() |
Common Issues & FAQ
Why is ROIC important?
ROIC > cost of capital indicates the company is creating value for shareholders.
What's a good ROIC?
Generally, ROIC above 10-15% is considered good; above 20% is excellent.
Excel Templates Using Retun On Invested Capital (ROIC - Historical)
These ready-made MarketXLS templates call hf_Retun_on_Invested_Capital() in their worksheet formulas. Open one to see the function working inside a complete model.
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