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

Examples

=hf_Retun_on_Invested_Capital("AAPL", 2023, 4)
Q4 2023 ROIC
=hf_Retun_on_Invested_Capital("MSFT", "ly")
Last year ROIC
=hf_Retun_on_Invested_Capital("GOOGL", 2023, , "TTM")
TTM ROIC
=hf_Retun_on_Invested_Capital("AAPL", 2023)*100
Convert to percentage

When 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

Q: Why is ROIC important? A: ROIC > cost of capital indicates the company is creating value for shareholders.

Q: What's a good ROIC? A: Generally, ROIC above 10-15% is considered good; above 20% is excellent.

Get Access to 1 Billion Usable Market data points IN YOUR EXCEL SHEETS WITH EASY TO USE EXCEL FUNCTIONS

Get started today
MarketXLS Excel Add-in Tutorial - How to Use Retun On Invested Capital (ROIC - Historical) and Other Financial Formulas
▶
How does MarketXLS work?

Related Functions