Bugs
0
Under review
Glitch with the ROIC
Okay so for some of the stocks, the ROIC doesn't seem to make sense. I have attached pictures below. Here it isScreen Shot 2019-01-11 at 5.49.20 PM.png
The ROIC will show something like 8% but EBIT would be like 20m and Invested capital would be like 100m (which is supposed to give a 20% ROIC). Correct me if I have something confused. This is for PHM (Pultlegroup). Thanks Jae.
Customer support service by UserEcho
Hi Brian,
ROIC is actually calculated as Net Operating Profit After Tax (NOPAT) / Invested Capital. NOPAT = EBIT * (1 - Tax Rate). PHM's Tax Rate in the TTM was 39.6%, so multiply that out, and you get the 8.4%.
Hope that helps.
Mike