Re: How do we calculate the ROIC?
A description of most of the ratios you may find on Stock Analyzer page:http://stock2own.com/StockMarket/Theory/FundamentalAnalysis/Ratios
ROIC formula itself is not very complex:
ROIC = (Net Income - Dividends) / Total Capital
BUT, there are exceptions for certain circumstances. For instance, in some cases net operating profit can be used instead of net income. Therefore in Stock Analyzer page you may see ROIC numbers for latest year and 5 years ago, as it is computed and reported by analysts on a financial web sites like msn and yahoo.