Signal Lab

Invested Capital & ROIC Bridge

An invested-capital builder (financing and operating views) with ROIC vs WACC.
It measures IC, NOPAT-based ROIC, spread to WACC, and simple EVA.
Use it to see whether returns clear the cost of capital before you fund the next project.

Balance Sheet Profitability What-ifs

Your numbers stay in this browser. Export only — nothing is uploaded. Illustrative, not financial advice.

Toggle financing IC (invested capital) — Debt + Equity − excess cash — vs operating IC — NWC + PP&E + intangibles/goodwill. NOPAT (net operating profit after tax) from EBIT × (1 − tax). Compare ROIC to WACC (weighted average cost of capital) and simple EVA (economic value added).

AU sample figures.

IC builds, earnings, and WACC

Both builds side-by-side. Persist locally · Jump to ROIC

(weighted average cost of capital)

Primary view

Financing IC

Debt + Equity − excess cash

Operating IC

NWC + PP&E + intangibles ± goodwill

NOPAT, IC, ROIC, spread, EVA (economic value added)

Traffic: ROIC vs WACC — create / destroy economic value.

Equations

  • NOPAT = EBIT × (1 − tax rate)
  • Financing IC = Debt + Equity − Excess cash
  • Operating IC = NWC + PP&E + Intangibles + (Goodwill if included)
  • ROIC = NOPAT ÷ IC · Spread = ROIC − WACC
  • EVA (economic value added) = NOPAT − IC × WACC

How this is calculated
  • Invested capital can be built from the financing side or the operating side — they need not match on illustrative samples.
  • Excluding goodwill shows a pre-goodwill operating ROIC (common in diligence packs).
  • WACC and EVA here are illustrative maths — not a valuation opinion.

Illustrative — not financial advice.

What-if shocks

NOPAT % and IC % shocks on the primary view.

Sensitivity

Take it with you

Get the worked example workbook in Excel — type your own numbers into it.

The Excel is the worked example workbook — type your own numbers into it. Stays on your device.