How to calculate ROIC?

Hi All,

For stock valuation I want to find out ROIC.

I have following queries:

1) Is ROIC,ROI and ROC are all same???

I know the formula for calculating ROIC however i dont know where to find the necessary parameters required for the formula.

2) Does anyone know any site where I will find ROIC? Or how you people calculate the ROIC.

On couple of sites I found ROI and ROC however when I crossed check their values they didnt matched. Therefore am not sure ROI and ROC are same or not.

Thanks,
Siddhi

What's ROIC ?

1. ROIC & ROC are the same. You can use the Financial Statements to calculate the values as
ROIC = (Net Operating Profit - Income Tax) / Total Capital

(Equity+Debt= Total capital in this formula)


ROI on the other hand is the Return on Investment and hence will differ from the view point of Capital Provider.
A shareholder's ROI is (Capital gain+Dividend)/Investment while a Debenture Holder's ROI = Interest Received/Investment in Debentures.

ROI should logically be calculated after discounting the Inflows and Outflows for present value of money.

Return on Invested Capital (ROIC) = Return on Capital (ROC)