When looking at historical ROIC, how do you treat R&D when looking at a company with an ongoing high R&D expense?
I imagine I should try to include it in an ROIC calculation in order to get an accurate picture of historical numbers.
Should I just cumulatively sum R&D? Should I even use ROIC when looking at NVDA for example?
Thanks.
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Is it R&D so your product can stay current (if yes, you expense) or is it R&D so you can develop completely new capabilities/markets/products - basically expanded TAM (if yes, amortize) I can understand why he line is blurry, especially for a company like Nvidia, but I think that’s the best way to approach it.
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