Used to take Greenblatts formula to derive the invested capital for the ROIC calculation (receivables + net PP&E + inventories - payables). Are the right to use assets from ifrs16 accounted for at all in the calculation? Strictly speaking Nopat is derived from leased assets, so wonder if and how to account for leased assets in the ROIC calculation. Thanks
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Some companies that follow IFRS do include lease RoU assets in net PP&E (in which case you are fine), but some report lease RoU assets on a separate B/S line item (i.e. in which case you will need to account for them them separately).
Unfortunately the only universal solution is to skim through the company's AR to see where they report their RoU assets and figure out whether you need to add them them separately (assuming of course that your NOPAT indeed does not include any lease/RoU depreciation expense)
Is there an adjustment for the lease liabilities as well? And any adjustment for the NOPAT?
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