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I am trying to calculate ROIC based on data I receive from Yahoo Financials. A comprehensive output of what I receive from the site is below, which elements of this can I put together to get ROIC?

{'balanceSheetHistoryQuarterly': {'AAPL': [{'2019-12-28': {
     'accountsPayable': 45111000000,
     'cash': 39771000000,
     'commonStock': 45972000000,
     'inventory': 4097000000,
     'longTermDebt': 93078000000,
     'longTermInvestments': 99899000000,
     'netReceivables': 39946000000,
     'netTangibleAssets': 89531000000,
     'otherAssets': 33195000000,
     'otherCurrentAssets': 12026000000,
     'otherCurrentLiab': 40577000000,
     'otherLiab': 48648000000,
     'otherStockholderEquity': -418000000,
     'propertyPlantEquipment': 44293000000,
     'retainedEarnings': 43977000000,
     'shortLongTermDebt': 10224000000,
     'shortTermInvestments': 67391000000,
     'totalAssets': 340618000000,
     'totalCurrentAssets': 163231000000,
     'totalCurrentLiabilities': 102161000000,
     'totalLiab': 251087000000,
     'totalStockholderEquity': 89531000000,
     'treasuryStock': -418000000}},
   {'2019-09-28': {
     'accountsPayable': 46236000000,
     'cash': 48844000000,
     'commonStock': 45174000000,
     'inventory': 4106000000,
     'longTermDebt': 91807000000,
     'longTermInvestments': 105341000000,
     'netReceivables': 45804000000,
     'netTangibleAssets': 90488000000,
     'otherAssets': 32978000000,
     'otherCurrentAssets': 12352000000,
     'otherCurrentLiab': 43242000000,
     'otherLiab': 50503000000,
     'otherStockholderEquity': -584000000,
     'propertyPlantEquipment': 37378000000,
     'retainedEarnings': 45898000000,
     'shortLongTermDebt': 10260000000,
     'shortTermInvestments': 51713000000,
     'totalAssets': 338516000000,
     'totalCurrentAssets': 162819000000,
     'totalCurrentLiabilities': 105718000000,
     'totalLiab': 248028000000,
     'totalStockholderEquity': 90488000000,
     'treasuryStock': -584000000}},
   {'2019-06-29': {
     'accountsPayable': 29115000000,
     'cash': 50530000000,
     'commonStock': 43371000000,
     'inventory': 3355000000,
     'longTermDebt': 84936000000,
     'longTermInvestments': 115996000000,
     'netReceivables': 26474000000,
     'netTangibleAssets': 96456000000,
     'otherAssets': 33634000000,
     'otherCurrentAssets': 10530000000,
     'otherCurrentLiab': 37107000000,
     'otherLiab': 51143000000,
     'otherStockholderEquity': -639000000,
     'propertyPlantEquipment': 37636000000,
     'retainedEarnings': 53724000000,
     'shortLongTermDebt': 13529000000,
     'shortTermInvestments': 44084000000,
     'totalAssets': 322239000000,
     'totalCurrentAssets': 134973000000,
     'totalCurrentLiabilities': 89704000000,
     'totalLiab': 225783000000,
     'totalStockholderEquity': 96456000000,
     'treasuryStock': -639000000}},
   {'2019-03-30': {
     'accountsPayable': 30443000000,
     'cash': 37988000000,
     'commonStock': 42801000000,
     'inventory': 4884000000,
     'longTermDebt': 90201000000,
     'longTermInvestments': 145319000000,
     'netReceivables': 26278000000,
     'netTangibleAssets': 105860000000,
     'otherAssets': 34587000000,
     'otherCurrentAssets': 12092000000,
     'otherCurrentLiab': 40900000000,
     'otherLiab': 52165000000,
     'otherStockholderEquity': -1499000000,
     'propertyPlantEquipment': 38746000000,
     'retainedEarnings': 64558000000,
     'shortLongTermDebt': 10505000000,
     'shortTermInvestments': 42104000000,
     'totalAssets': 341998000000,
     'totalCurrentAssets': 123346000000,
     'totalCurrentLiabilities': 93772000000,
     'totalLiab': 236138000000,
     'totalStockholderEquity': 105860000000,
     'treasuryStock': -1499000000}}]},
 'cashflowStatementHistoryQuarterly': {'AAPL': [{'2019-12-28':
    {'capitalExpenditures': -2107000000,
     'changeInCash': -8559000000,
     'changeToAccountReceivables': 2015000000,
     'changeToInventory': -28000000,
     'changeToLiabilities': -104000000,
     'changeToNetincome': 1219000000,
     'changeToOperatingActivities': 2362000000,
     'depreciation': 2816000000,
     'dividendsPaid': -3539000000,
     'investments': -10473000000,
     'issuanceOfStock': 2000000,
     'netBorrowings': 231000000,
     'netIncome': 22236000000,
     'otherCashflowsFromFinancingActivities': -16000000,
     'otherCashflowsFromInvestingActivities': -130000000,
     'repurchaseOfStock': -22085000000,
     'totalCashFromFinancingActivities': -25407000000,
     'totalCashFromOperatingActivities': 30516000000,
     'totalCashflowsFromInvestingActivities': -13668000000}},
   {'2019-09-28': {
     'capitalExpenditures': -2777000000,
     'changeInCash': -1927000000,
     'changeToAccountReceivables': -8768000000,
     'changeToInventory': -785000000,
     'changeToLiabilities': 18032000000,
     'changeToNetincome': 885000000,
     'changeToOperatingActivities': -6319000000,
     'depreciation': 3179000000,
     'dividendsPaid': -3479000000,
     'investments': 2802000000,
     'issuanceOfStock': 390000000,
     'netBorrowings': -293000000,
     'netIncome': 13686000000,
     'otherCashflowsFromFinancingActivities': -22000000,
     'otherCashflowsFromInvestingActivities': -810000000,
     'repurchaseOfStock': -17635000000,
     'totalCashFromFinancingActivities': -21039000000,
     'totalCashFromOperatingActivities': 19910000000,
     'totalCashflowsFromInvestingActivities': -798000000}},
   {'2019-06-29': {
     'capitalExpenditures': -2000000000,
     'changeInCash': 12334000000,
     'changeToAccountReceivables': 919000000,
     'changeToInventory': 1502000000,
     'changeToLiabilities': -16000000,
     'changeToNetincome': 1457000000,
     'changeToOperatingActivities': -5203000000,
     'depreciation': 2933000000,
     'dividendsPaid': -3629000000,
     'investments': 30120000000,
     'issuanceOfStock': 1000000,
     'netBorrowings': -5026000000,
     'netIncome': 10044000000,
     'otherCashflowsFromFinancingActivities': 4000000,
     'otherCashflowsFromInvestingActivities': -298000000,
     'repurchaseOfStock': -18154000000,
     'totalCashFromFinancingActivities': -26804000000,
     'totalCashFromOperatingActivities': 11636000000,
     'totalCashflowsFromInvestingActivities': 27502000000}},
   {'2019-03-30': {
     'capitalExpenditures': -2363000000,
     'changeInCash': -4954000000,
     'changeToAccountReceivables': 2964000000,
     'changeToInventory': 70000000,
     'changeToLiabilities': -11693000000,
     'changeToNetincome': 1176000000,
     'changeToOperatingActivities': 4037000000,
     'depreciation': 3040000000,
     'dividendsPaid': -3443000000,
     'investments': 15749000000,
     'issuanceOfStock': 390000000,
     'netBorrowings': -2506000000,
     'netIncome': 11561000000,
     'otherCashflowsFromFinancingActivities': -87000000,
     'otherCashflowsFromInvestingActivities': 86000000,
     'repurchaseOfStock': -23811000000,
     'totalCashFromFinancingActivities': -29457000000,
     'totalCashFromOperatingActivities': 11155000000,
     'totalCashflowsFromInvestingActivities': 13348000000}}]},
 'incomeStatementHistoryQuarterly': {'AAPL': [{'2019-12-28': {
     'costOfRevenue': 56602000000,
     'discontinuedOperations': None,
     'ebit': 25569000000,
     'effectOfAccountingCharges': None,
     'extraordinaryItems': None,
     'grossProfit': 35217000000,
     'incomeBeforeTax': 25918000000,
     'incomeTaxExpense': 3682000000,
     'interestExpense': -785000000,
     'minorityInterest': None,
     'netIncome': 22236000000,
     'netIncomeApplicableToCommonShares': 22236000000,
     'netIncomeFromContinuingOps': 22236000000,
     'nonRecurring': None,
     'operatingIncome': 25569000000,
     'otherItems': None,
     'otherOperatingExpenses': None,
     'researchDevelopment': 4451000000,
     'sellingGeneralAdministrative': 5197000000,
     'totalOperatingExpenses': 66250000000,
     'totalOtherIncomeExpenseNet': 349000000,
     'totalRevenue': 91819000000}},
   {'2019-09-28': {
     'costOfRevenue': 39727000000,
     'discontinuedOperations': None,
     'ebit': 15625000000,
     'effectOfAccountingCharges': None,
     'extraordinaryItems': None,
     'grossProfit': 24313000000,
     'incomeBeforeTax': 16127000000,
     'incomeTaxExpense': 2441000000,
     'interestExpense': -810000000,
     'minorityInterest': None,
     'netIncome': 13686000000,
     'netIncomeApplicableToCommonShares': 13686000000,
     'netIncomeFromContinuingOps': 13686000000,
     'nonRecurring': None,
     'operatingIncome': 15625000000,
     'otherItems': None,
     'otherOperatingExpenses': None,
     'researchDevelopment': 4110000000,
     'sellingGeneralAdministrative': 4578000000,
     'totalOperatingExpenses': 48415000000,
     'totalOtherIncomeExpenseNet': 502000000,
     'totalRevenue': 64040000000}},
   {'2019-06-29': {
     'costOfRevenue': 33582000000,
     'discontinuedOperations': None,
     'ebit': 11544000000,
     'effectOfAccountingCharges': None,
     'extraordinaryItems': None,
     'grossProfit': 20227000000,
     'incomeBeforeTax': 11911000000,
     'incomeTaxExpense': 1867000000,
     'interestExpense': -866000000,
     'minorityInterest': None,
     'netIncome': 10044000000,
     'netIncomeApplicableToCommonShares': 10044000000,
     'netIncomeFromContinuingOps': 10044000000,
     'nonRecurring': None,
     'operatingIncome': 11544000000,
     'otherItems': None,
     'otherOperatingExpenses': None,
     'researchDevelopment': 4257000000,
     'sellingGeneralAdministrative': 4426000000,
     'totalOperatingExpenses': 42265000000,
     'totalOtherIncomeExpenseNet': 367000000,
     'totalRevenue': 53809000000}},
   {'2019-03-30': {
     'costOfRevenue': 36194000000,
     'discontinuedOperations': None,
     'ebit': 13415000000,
     'effectOfAccountingCharges': None,
     'extraordinaryItems': None,
     'grossProfit': 21821000000,
     'incomeBeforeTax': 13793000000,
     'incomeTaxExpense': 2232000000,
     'interestExpense': -1010000000,
     'minorityInterest': None,
     'netIncome': 11561000000,
     'netIncomeApplicableToCommonShares': 11561000000,
     'netIncomeFromContinuingOps': 11561000000,
     'nonRecurring': None,
     'operatingIncome': 13415000000,
     'otherItems': None,
     'otherOperatingExpenses': None,
     'researchDevelopment': 3948000000,
     'sellingGeneralAdministrative': 4458000000,
     'totalOperatingExpenses': 44600000000,
     'totalOtherIncomeExpenseNet': 378000000,
     'totalRevenue': 58015000000}}]}}  

I saw an excerpt here, which says

ROIC is calculated by dividing net operating profit after tax over average invested capital. Invested capital is simply total equity + debt - cash.

NOPAT (Operating Income * (1 - Tax Rate)) / Average Invested Capital (Total Shareholder's Equity + Debt - Cash).

I have data for all quarters of 2019. Operating Income seems to be a sum, annual number. All else I took to be 2019 Q4.

operatingIncome = 13415000000 + 11544000000 + 15625000000 + 25569000000

totalStockholderEquity = 89531000000  # Q4

debt = 10224000000 # shortlongtermdebt (Q4)

cash = 39771000000  # Q4

nopat = operatingIncome * (1.0-0.2575)
nopat / (totalStockholderEquity + debt - cash)

I get

ROIC = 0.81 = 81%.

Does this look right? I googled for AAPL 2019 ROIC, it says 93.03%. It is not too far.

What I did not do was taking averages for the Total Shareholder's Equity + Debt - Cash computation. The article used two quarters YoY, maybe that is the difference.

Thanks,

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I venture a guess and say

\begin{align*} \text{ROIC} &= \text{Net Income / Invested Capital (Total Shareholder's Equity + Debt - Cash)} \\ &= \text{'net income' / ('totalStockholderEquity + 'totalLiab' - 'cash')} \\ & = 118773000 / (8704386000 + 3999003000 - 1799082000)\\ & = 0.0108923 \end{align*}

Please feel free to suggest any changes here.

| improve this answer | |
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  • $\begingroup$ Thanks! So does the formula mean "Invested Capital = Total Shareholder's Equity + Debt - Cash" ? $\endgroup$ – BBAerodyn Mar 2 at 15:42
  • $\begingroup$ Investopedia says "The formula for ROIC is (net income - dividend) / (debt + equity). The ROIC formula is calculated by assessing the value in the denominator, total capital, which is the sum of a company's debt and equity. There are a number of ways to calculate this value" $\endgroup$ – BBAerodyn Mar 2 at 15:46
  • $\begingroup$ Ur formula seems close $\endgroup$ – BBAerodyn Mar 2 at 15:46
  • 1
    $\begingroup$ Yes, you interpreted my formula correctly. You had to substract dividends but they are not listed in your data. $\endgroup$ – SmurfAcco Mar 2 at 18:40
  • $\begingroup$ Sorry I changed the data on you, it was TWTR data, now it is AAPL data. Readers beware $\endgroup$ – BBAerodyn Mar 3 at 11:24

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