Scribd Logo
Upload

Welcome to Scribd!

  • 1

    Uploaded by

    Marvin Cinco
    14 views1 page
    The document calculates invested capital and return on invested capital (ROIC) for three companies. It finds invested capital by subtracting depreciation from total assets for each. It then calculates ROIC by dividing net income by invested capital and multiplying by 100. ROIC is highest for Company C at 21.82%, followed by Company A at 15.79%, with Company B the lowest at 14.29%.

    Original Description:

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The document calculates invested capital and return on invested capital (ROIC) for three companies. It finds invested capital by subtracting depreciation from total assets for each. It then calculates ROIC by dividing net income by invested capital and multiplying by 100. ROIC is highest for Company C at 21.82%, followed by Company A at 15.79%, with Company B the lowest at 14.29%.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    14 views1 page

    1

    Uploaded by

    Marvin Cinco
    The document calculates invested capital and return on invested capital (ROIC) for three companies. It finds invested capital by subtracting depreciation from total assets for each. It then calculates ROIC by dividing net income by invested capital and multiplying by 100. ROIC is highest for Company C at 21.82%, followed by Company A at 15.79%, with Company B the lowest at 14.29%.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 1

    Let's calculate the invested capital for each company:

    For Company A: Invested Capital = 525 - 50 = 475

    For Company B: Invested Capital = 575 - 50 = 525

    For Company C: Invested Capital = 525 - 50 = 475

    Let's calculate the ROIC for each company:

    Company A:

    Invested Capital = Debt + Equity = 0 + 475 = 475

    ROIC = (Net Income / Invested Capital) * 100 = (75 / 475) * 100 ≈ 15.79%

    Company B:

    Invested Capital = Debt + Equity = 0 + 525 = 525

    ROIC = (Net Income / Invested Capital) * 100 = (75 / 525) * 100 ≈ 14.29%

    Company C:

    Invested Capital = Debt + Equity = 0 + 275 = 275

    ROIC = (Net Income / Invested Capital) * 100 = (60 / 275) * 100 ≈ 21.82%

    Therefore, the ROIC for Company A is approximately 15.79%, for Company B is


    approximately 14.29%, and for Company C is approximately 21.82%.

    You might also like