Traderji.com - Discussion forum for Stocks Commodities & Forex

How to calculate ROIC?

Discuss How to calculate ROIC? at the Fundamental Analysis within the Traderji.com - Discussion forum for Stocks Commodities & Forex; Hi All, For stock valuation I want to find out ROIC. I have following queries: ...


Go Back   Traderji.com - Discussion forum for Stocks Commodities & Forex > METHODS & STRATEGIES > Fundamental Analysis

Notices

Fundamental Analysis Discuss all about fundamental analysis and valuation. The world of PEs, free cash flow, ratio analysis, multiples and accounting numbers.


Advertise Here

Reply
 
Thread Tools
Sponsored Links
  #1  
Old 22nd July 2008, 02:29 PM
Member
 
Join Date: Jun 2008
Posts: 1
Thanks: 0
Thanked 0 Times in 0 Posts
Siddhi15 is on a distinguished road
Reputation: 10
Default 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
Reply With Quote
  #2  
Old 28th July 2008, 11:23 PM
Member
 
Join Date: Jul 2008
Posts: 1
Thanks: 0
Thanked 0 Times in 0 Posts
S_S_525 is on a distinguished road
Reputation: 10
Default Re: How to calculate ROIC?

What's ROIC ?
Reply With Quote
  #3  
Old 29th July 2008, 12:36 PM
Member
 
Join Date: May 2008
Posts: 90
Thanks: 0
Thanked 3 Times in 3 Posts
moneygurukul is on a distinguished road
Reputation: 13
Default Re: How to calculate ROIC?

Quote:
Originally Posted by Siddhi15 View Post
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
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.
Reply With Quote
  #4  
Old 29th July 2008, 12:37 PM
Member
 
Join Date: May 2008
Posts: 90
Thanks: 0
Thanked 3 Times in 3 Posts
moneygurukul is on a distinguished road
Reputation: 13
Default Re: How to calculate ROIC?

Quote:
Originally Posted by S_S_525 View Post
What's ROIC ?
Return on Invested Capital (ROIC) = Return on Capital (ROC)
Reply With Quote
Sponsored Links

Reply

Bookmarks


Advertise Here


Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


All times are GMT +5.5. The time now is 01:31 PM.

Indemnity, Disclaimer & Disclosure Notice:
• By visiting Traderji.com you indicate your acceptance of our Forum Rules Disclaimer & Disclosure and indemnify Traderji.com, its associates and related parties of all claims howsoever resulting from the usage of the forum.
Disclaimer: Trading or investing in stocks & commodities is a high risk activity. Any action you choose to take in the markets is totally your own responsibility. Traderji.com will not be liable for any, direct or indirect, consequential or incidental damages or loss arising out of the use of this information.
Disclosure: The information in this forum is neither an offer to sell nor solicitation to buy any of the securities mentioned herein. The writers may or may not be trading in the securities mentioned.
• All names or products mentioned are trademarks or registered trademarks of their respective owners.
General Content Disclaimer Notice:
In light of our policy of encouraging candid, open exchanges of views and the rapid distribution of information originating from many sources, Traderji.com cannot determine the accuracy of information that may be uploaded to the forum. Opinions, advice and all other information expressed by participants in discussions are those of the author. You rely on such information at your own risk. You are urged to seek professional advice for specific, individual situations and not rely solely on advice or opinions given in the discussions. Since Traderji.com is an open and free discussion forum, any comments made by members of this forum in their posts reflect their own views and not of the owner or administrator of Traderji.com. Thus the owner/administrator indemnify themselves of all claims whatsoever and will not be liable or responsible for any members comments/views in this forum Traderji.com. If you find any objectionable or offensive posts made by members of this forum which you would like to bring to our notice for removal then please Contact Us.
 


Copyright © 2001 - 2008, Traderji.com All Rights Reserved.

Recommended Websites - www.TradersEdgeIndia.com - www.TradingPicks.com - www.MasterOfTrading.com