**📅 Date:** ➤ ⌈ [[2025-07-21-Mon〚Internal Rate of Return (IRR) ▪ROIC ▪ Canadian Eat Well Plate〛]]⌋ **💭 What:** ➤ ROIC vs ROI ROIC: 会计思路，长期资本产生的回报 ROI 具体投资带来的受益 ➤ 评估企业资本使用效率 - ROIC > WACC - ROIC 需要新的信息，一个企业的level是否需要投资， 需要NOPAT ， Invested Capital - 当看到==NOPAT== 和 Invested Capital 时要立刻想到==ROIC== **👀 Snap:** ➤**NOPAT** = *Net Operating Profit After Taxes*![[IMG_2169.jpeg|#left|300]] ⇩ 🅻🅸🅽🅺🆂 ⇩ **🏷️ Tags**: #💰/Economy **🗂 Menu**: ⌈[[✢ M O C ➣ 07 ⌈J U L - 2 0 2 5⌉ ✢|2025 - J U L- MOC]]⌋ ⌈[[✢ L O G ➢ 07 ⌈J U L - 2 0 2 5⌉ ✢|2025 - J U L - LOG]]⌋ #👾/Private ------➤ ⌈[[💰L050 - 01- Net Present Value (NPV) 净现值]]⌋ ------➤ ⌈[[💰L051 -03 WACC – Weighted Average Cost of Capital 加权平均资本成本]]⌋ ------➤ ⌈[[💰L051 -04 - Review Discount Rate 贴现率]]⌋ --- ### 📌 Definition: ![[Screenshot 2025-07-21 at 19.20.14.png]] **ROIC** measures **how efficiently** a company generates **returns from all invested capital**, including **shareholders’ equity and debt**. It is a key **profitability ratio** for assessing the **quality of capital allocation**. > **Formula:** > ROIC = **NOPAT** ÷ **Invested Capital** --- ### 🧮 Components: - **NOPAT** = Net Operating Profit After Taxes = EBIT × (1 – Tax Rate) - Strips out financing decisions to focus on operations - Excludes non-operating income/expenses - **Invested Capital** = Total Capital from both **Equity + Debt** = Net Working Capital + Net PP&E + Other Long-Term Assets (or: Total Assets – Non-Interest-Bearing Current Liabilities) --- ### ✅ Interpretation: - ROIC **> WACC** ⇒ Value is being **created** - ROIC **< WACC** ⇒ Value is being **destroyed** A **high ROIC** signals a **strong competitive advantage** or superior capital allocation strategy. --- ### 📈 Use in Investment Analysis: - Compare **ROIC vs. WACC** to assess long-term project value - Used in **DCF valuation** and **economic value added (EVA)** frameworks - Focuses on **operating efficiency**, not affected by leverage - Critical for evaluating **management effectiveness** --- ### ⚠️ Pitfalls: - Inconsistent ==NOPAT== or capital definitions across companies - Can be manipulated via accounting choices (e.g., capitalization vs. expensing) - Doesn’t reflect timing of returns or reinvestment requirements --- ### **🧠 Example:** - EBIT = $1,000 - Tax Rate = 25% - NOPAT = $1,000 × (1 – 0.25) = $750 - Invested Capital = $6,000 - ROIC = $750 ÷ $6,000 = **12.5%** If **WACC = 9%**, then **ROIC > WACC** ⇒ value creation ---