Swear to god you are the only person on youtube who can explain it to lay person. Thanks!
@Viper4ever05
5 жыл бұрын
Great video! I like how you used an actual financial statement to guide the calculation.
@debiasi88
4 жыл бұрын
Great video... same comments as below. No one gives an example with actual financial statements. Thanks!
@every1readthis
Жыл бұрын
Thank you so much for this great video. There are smarter people because of you! 😊
@tristanxunger
3 жыл бұрын
I'm surprised this video is not ranked higher. Did a fantastic job explaining ROIC and the fundamentals of calculating it.
@EmiCiappi
3 жыл бұрын
You are great!!! Very easy to understand and very easy to understand how you can use the ROIC!! Cheers from China!
@Yourworstnightmare03
8 ай бұрын
Great video, easy to follow and helped me understand ROIC calculations and the meaning of them!
@leticiajuarez2856
3 жыл бұрын
You just saved my life and my project! 😝 so easy after I watched your video!! Thank you!
@davimonteiro5895
2 жыл бұрын
Fantastic explanation! Thx for using the financial statement to teach it, that was exactly what I was looking for!
@nivedvats
9 ай бұрын
Thanks a ton for explaining it so well with an example. Please make a similar video on ROCE.
@oybek1982
4 жыл бұрын
Very simple explanation using the exact financial statement! Thank you, keep going--!
@retamozotomasdavid381
4 жыл бұрын
Short term borrowing is short term debt?this is correct??please can you answer me?
@jyotibarman1247
4 жыл бұрын
@@retamozotomasdavid381 yes you're correct ST borrowing and ST debt is same
@baotu88
4 жыл бұрын
Very well explained. this helped me greatly. subscribed! thanks
@clovelly1606
4 жыл бұрын
Great! So clearly explained. A big thank you to you.
@parthaaec07
2 жыл бұрын
Great explanation of ROCE. Thanks.
@khalidfr173
4 ай бұрын
Thank you, simple and clear.
@aoihyoudou
7 ай бұрын
thank you from the bottom of my heart 😭
@bennykhoo99
Жыл бұрын
3 years ago from your blog. How about the missing cash related to Cash from Investing and Financing while computing ROIC?
@Bernoulliflyer
3 жыл бұрын
Thank you for a very clear explanation.
@marcelomorais6891
4 жыл бұрын
Well explained. Thank you for share this video for free. It helped me a lot.
@wirsyt
2 жыл бұрын
Very comprehensive video!
@SahilSingh-jv6jg
2 жыл бұрын
Perfectly explained!
@richardgordon
3 жыл бұрын
Brilliantly explained! Thank you!
@davidj2616
4 жыл бұрын
Great video! clearly-explained.
@furkanoztanriseven8270
4 жыл бұрын
How about cash and cash equivalents? Shouldn't they be subtracted from debt plus equity?
@dannyboy1533
3 жыл бұрын
Thank you for creating this video.
@saulyabarbedoya767
3 жыл бұрын
Well done! I was looking for a video who could help me. Regards from Peru.
@stockjanitor
3 жыл бұрын
well detailed! love the example!
@yashshah4307
Жыл бұрын
Great explanation
@cesarricardopaccotorres8300
2 жыл бұрын
Muy bien video; gracias a Google por implementar el traductor de video que me ayudo a entender el video. Viva el desarrollo tecnológico. Y, también, gracias a ti Bro, por este grandioso video.
@AnaroseLeyte
11 ай бұрын
thanks sir very understandable
@soenaing2004
2 жыл бұрын
Great video!
@cashflowyield
3 жыл бұрын
Great video! Thank you.
@lakmalgamage1539
Жыл бұрын
thank you very much sir...
@juanvicencio2390
3 жыл бұрын
thanks for the video! I have a question, What is the point behind excluding interest? If NOPAT is what the company would have earned if it had no debt...what is the point behind using a value that ignores what you paid to raise that debt? Shouldn't be more accurate (and conservative) to include what you had to pay for that debt (debt that you ultimately used to generate capital)
@varund4862
3 жыл бұрын
ROIC actually helps us when we are comparing firms with different capital structure (Debt-equity ratios). It helps identify the firms which are utilizing their capital better.
@retamozotomasdavid381
4 жыл бұрын
Short term borrowing is short term debt??this is correct?
@richardsalley9848
3 жыл бұрын
Very helpful! Thank you!
@Erez.Levi.Stocks
4 жыл бұрын
Amazing explain, thanks
@andrebastos3362
2 жыл бұрын
Shouldnt you have used previous years balance sheet? 2018 income statement and 2017 BS?
@NoRegertsHere
11 ай бұрын
Yep.
@Tony_Toni_Tone
4 жыл бұрын
Better than my teacher
@maldighaithir
2 жыл бұрын
Hi Do you consider Commercial papers in the short term debt? usually it is a non interest bearing debt thank you
@luvgun2687
6 ай бұрын
Is it possible to Calculate ROIC in each trimester ?
@kidze73
2 жыл бұрын
hi Mr Growth CFO, what do you think about the notion of subtracting Cash and Cash Equivalents from Invested Capital? Is it necessary? Does it make sense or helpful in some way in terms of meaning? Why other question is, if the company decides to reinvest part of their NOPAT this year, or borrow more debt or raise capital. Can I define that "extra" investment by taking the increase in Invested Capital over the year?
@justblaze73
Жыл бұрын
He should have subtracted the Cash & Cash Equiv. (or technically, maybe 98% of it) out. He didn't and now misled everyone who watched the video.
@ptyo3892
4 жыл бұрын
Nice explanation...👍
@angelbless45
2 жыл бұрын
Thank you for the explanation! Just one question, shouldn't we use the IC from previous year? I mean, IC in year t=0 will see its return on t=1, right?
@ammarkhan3478
2 жыл бұрын
I have the same question, please reply if you get the answer.
@NoRegertsHere
11 ай бұрын
Yeah. Use IC from previous year. Some use the average over the year. But really, it’s the end of the year before that’s best
@Warrencio
2 жыл бұрын
Sir please make a video on how to calculate WACC. Thank you
@StockTalkwithNikoKritikos
Жыл бұрын
Do you think ROIC is a better metric than ROE or ROA?
@TSC369
Жыл бұрын
Thanks a lot for sharing your clearcut demo on finding the ROIC! I notice that the Income Statement clearly shows $49,968.00 as Income Tax Expense whereas you've taken $49,978.00 to calculate the Tax Rate! Input error? 🤔🤔🤔
@NoRegertsHere
11 ай бұрын
Income tax expense isn’t the same as tax rate.
@yusteven3216
4 жыл бұрын
Very clear, 👌
@hit3212
2 жыл бұрын
Shouldn't cash be deducted from the calculation of invested capital?
@strfrieue
10 ай бұрын
thank you sir!!
@k4ir0s
Жыл бұрын
Why do we only use interest bearing debt to make the calculation? Aren't things like Account's Payable and Accrued Expenses almost equivalent to debt? It seems that companies can manipulate their balance sheet to make it appear that they have low debt by simply inflating their Account's Payable and Accrued Expenses knowing that stock pickers will just look at interest bearing debt. I'm new to accounting --does this make sense?
@Matsoni85
Жыл бұрын
Money that has no expense dont count. Its just dead money and cost of capital. This is all theoritical mate and good on you for thinking your self
@turkebalamash5955
8 ай бұрын
Thank you
@judethedude9542
21 күн бұрын
Has anyone manually calculated the Hasbro ROIC% for 2017 and 2016. I followed the same steps and came up with 2017: 11.11% and 2016: 18.76% . Can someone confirm please what is correct?
@Legui1231
4 жыл бұрын
It was useful, thanks
@tytus9618
3 жыл бұрын
Brilliant
@ada7831
4 жыл бұрын
How to calculate banks NOPT as they don't have operating profits in their income statement?
@Dociy
4 жыл бұрын
DO we add reserve and surplus while calculating invested capital?
@ahmedzakikhan7639
Жыл бұрын
What about Cash ?
@abhishekjoshi7908
2 жыл бұрын
Don't we need to subtract cash?
@katon361
2 жыл бұрын
Thanks!!!!!
@andresw1331
3 жыл бұрын
ROIC Is similar than ROCE?
@Matsoni85
Жыл бұрын
the best
@rzv_sd3720
4 жыл бұрын
For invested capital - all the formulas i have found have also non-operating cash. Youre formula does not. Is it ok to exclude the non-operating cash? I am asking because I am finding troubles in obtaining them :(
@retamozotomasdavid381
4 жыл бұрын
Short term borrowing is short therm debt. This is correct??please can you answer me?
@rzv_sd3720
4 жыл бұрын
@@retamozotomasdavid381 yes
@retamozotomasdavid381
4 жыл бұрын
@@rzv_sd3720 muchas gracias camarada,saludos desde argentina
@sudeshnabora524
3 жыл бұрын
What happens if the net income is negative . How do we find the tax rate then ?
@carlfroberg
3 жыл бұрын
Well if the net income is negative you shouldn't invest in the company in the first place.
@stockjanitor
3 жыл бұрын
theres a contradiction though,, if company A has high roic, low roa and/or low roe, and has been performing like this for years vs company B has low roic, high roa and/or high roe, and also performing like this for years, assume same industry category clearly higher roe makes shareholder more money?
@MichaelPriceOfficial
4 жыл бұрын
When I look up Incomes taxes for Hasbro in 2018 on TD Ameritrade's site it says it's 9,000,000. Not $49,968. Can you confirm that you made an error?
@retamozotomasdavid381
4 жыл бұрын
Short term borrowing is short term debt. This is correct??please can you answer me?
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