MarketXLS

Return on Invested Capital (Current Quarter)

Returns the Return on Invested Capital (ROIC) for the most recent quarter. ROIC measures how efficiently a company uses its capital to generate profits.

What is ROIC?

ROIC = Net Operating Profit After Tax (NOPAT) / Invested Capital

Where:

  • NOPAT = Operating Income x (1 - Tax Rate)
  • Invested Capital = Total Debt + Shareholders' Equity - Cash

Parameters

Parameter Required Description
Symbol Yes Stock ticker symbol

Notes

  • ROIC is expressed as a decimal (0.20 = 20%)
  • Higher ROIC indicates better capital efficiency
  • Compare to cost of capital (WACC) for value creation assessment

Syntax

=ReturnOnInvestedCapitalQuarter(Symbol)
Excel Desktop (Windows)

Returns

number

ROIC as a decimal

Examples

=ReturnOnInvestedCapitalQuarter("AAPL")
Apple quarterly ROIC
=ReturnOnInvestedCapitalQuarter("MSFT")
Microsoft quarterly ROIC
=ReturnOnInvestedCapitalQuarter("GOOGL")
Google quarterly ROIC
=ReturnOnInvestedCapitalQuarter(A1)
Symbol from cell
=ReturnOnInvestedCapitalQuarter("AAPL") * 100
Convert to percentage

When to Use

  • Evaluating capital efficiency
  • Comparing companies in same industry
  • Assessing management effectiveness
  • Value investing analysis
  • Quality screening

When NOT to Use

Scenario Use Instead
Need annual ROIC ReturnOnInvestedCapitalOneYear()
Need return on equity ReturnOnEquity()
Need return on assets ReturnOnAssets()
Need return on capital ReturnOnCapital()
Need profit margin ProfitMargin()

Common Issues & FAQ

Why am I getting "NA"?

Check that:

  • The symbol is valid
  • The company has reported quarterly financials
  • Financial data is available for ROIC calculation

How do I convert to percentage?

Multiply by 100: =ReturnOnInvestedCapitalQuarter("AAPL") * 100

What's a good ROIC?

Generally:

  • Above 15% is considered good
  • Above 20% is excellent
  • Compare to industry averages and the company's WACC

Related Formulas

More MarketXLS Key Ratios formulas you can use in the same worksheet:

See ReturnOnInvestedCapitalQuarter used in a complete workbook: Boost Your Investment Returns with the ROIC Formula

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MarketXLS Excel Add-in Tutorial - How to Use Return on Invested Capital (Current Quarter) and Other Financial Formulas
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