ROIC Excel Template

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ROIC Excel Template

This ROIC Excel Template will aid you in calculating the NOPAT and Book Value of Invested Capital, and from these elements calculate the period ROIC.

Here is a snippet of the template:

ROIC Template Screenshot

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The ROIC Formula

Return on Invested Capital is calculated by taking into account the cost of the investment and the returns generated. Returns are all the earnings acquired after taxes but before interests are paid.

The value of an investment is calculated by subtracting all current long-term liabilities, those due within the year, from the company’s assets. The cost of investment can either be the total amount of assets a company requires to run its business or the amount of financing from creditors or shareholders. The return is then divided by the cost of investment.

ROIC Formula

Note: NOPAT is equal to EBIT x (1 – tax rate)

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Analyst Certification FMVA® Program

Below is a break down of subject weightings in the FMVA® financial analyst program. As you can see there is a heavy focus on financial modeling, finance, Excel, business valuation, budgeting/forecasting, PowerPoint presentations, accounting and business strategy.

 

Financial Analyst certification curriculum

 

A well rounded financial analyst possesses all of the above skills!

 

Additional Questions & Answers

CFI is the global institution behind the financial modeling and valuation analyst FMVA® Designation. CFI is on a mission to enable anyone to be a great financial analyst and have a great career path. In order to help you advance your career, CFI has compiled many resources to assist you along the path.

In order to become a great financial analyst, here are some more questions and answers for you to discover:

 

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