How to calculate ROIC.
Nathan: Here is how you calculate ROIC. Now that would be $785.50, I do take cash or certified check,ok <gg>
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Return On Invested Capital" (ROIC): The term Return On Invested Capital (ROIC) means for the Company or any business unit its Results of Operations divided by its Capital. These values are defined as follows:
a. "Results of Operations": The term Results of Operations means operating income, adjusted for special charges and increased by the interest portion of lease payments, plus other income exclusive of interest income, less the related cash income taxes.
b. "Capital": The term Capital means short- and long-term debt, the present value of all leases with a term exceeding one year, and factored accounts receivable, plus shareholders' equity adjusted for special charges and accounting changes, and any other debt or equity instruments, less cash, cash equivalents, and short-term investments.
The ROIC calculation excludes any non-routine one-of-a-kind gains or losses, including gains or losses which result from a change in accounting. |
