Return on invested capital

$$\frac{\text{NOPAT}}{\text{Avg invested capital}},\text{ NOPAT}=\text{Op. income}\times (1-\text{tax rate})$$

Return on invested capital. Captures the full economic return on operating capital, independent of capital structure. ROIC > WACC is the academic gold-standard signal of value creation.

Direction: Higher better Category: returns

Inputs (XBRL fallback chains):

• cash: CashAndCashEquivalentsAtCarryingValue -> CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents -> Cash
• equity: StockholdersEquity -> StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
• long_term_debt: LongTermDebt -> LongTermDebtNoncurrent
• operating_income: OperatingIncomeLoss
• short_term_debt: ShortTermBorrowings -> DebtCurrent -> LongTermDebtCurrent

Returns None when: Returns None when Operating income, prior-FY equity anchor, or invested-capital components (long-term debt, equity, cash) are missing at either endpoint. Short-term debt is included when tagged, treated as zero otherwise. Default tax rate is 21%.

Source code

Implementation: roic in src/eqtytrk/metrics/ratios.py (or valuation.py for multiples).