Why does Rosenbaum calculate ROIC as:
=EBIT / (AVERAGE( (year 1 total capital - cash) + (year 2 total capital - cash) ) ?
I thought ROIC was (earnings - dividends) / total capital
| +222 | UBS Accused of Favoring H-1B Workers While Cutting U.S.-Born Employees | 54 | 6h |
| +123 | ONLY THESE BANKS OR YOU STRUCK OUT | 34 | 10h |
| +111 | IB Energy Drink Tier List / Ranking | 73 | 10h |
| +91 | PJT M&A Group Selection 2026 | 14 | 1d |
| +59 | Firm Thinks I'm Lying About Offer | 18 | 1d |
| +51 | Feedback for internship first desk at IBD BB - personal fit, "don't be too confident" | 29 | 1d |
| +38 | Indiana University Fraternity Pipelines | 19 | 4h |
| +33 | Stay at Weak Dealflow Team or Lateral? | 10 | 14h |
| +30 | Does BofA still pay its associates rat pellets? | 15 | 1d |
| +30 | Rogo AI | 11 | 1h |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Et sit repellendus sunt quaerat autem ipsum. Dolore ut nam maxime nulla praesentium ut officiis. Reprehenderit minus omnis ea assumenda. Eveniet nulla consequatur quam ad.
Libero odio vitae omnis. Eaque adipisci minima saepe voluptate sequi a. Maiores vel accusantium sit et aspernatur. Dicta amet nulla sunt enim quibusdam mollitia.
Iusto saepe sequi corporis vitae. Cupiditate et voluptatem laborum quasi est asperiores rerum.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...