Question: The return on invested capital ( ROIC ) differs from the return on assets ( ROA ) . First, ROIC is based on total invested

The return on invested capital (ROIC) differs from the return on assets (ROA). First, ROIC is based on total invested capital rather than total assets. Second, the numerator of the ROIC is after-tax operating income rather than net income.
a. True
b. False

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

Which of the following statement is FALSE? The return on invested capital (ROIC) differs from the return on assets (ROA). First, ROIC is based on total invested capital rather than total assets....

Q:

The return on invested capital ( ROIC ) differs from the return on assets ( ROA ) First, ROIC is based on total invested capital rather than total assets. Second, the mumerator of the ROIC is after -...

Q:

A Moving to another question will save this response. Question 17 10 points Save Answ 1. The return on invested capital (ROIC) differs from the return on assets (ROA). First, ROIC is based on total...

Q:

Which of the following statement is FALSE? The return on invested capital (ROIC) differs from the return on assets (ROA). First, ROIC is based on total invested capital rather than total assets....

Q:

Assume a 25% Tax-Rate. YETI Holdings, Inc. (Dollars in Millions) Actual 2018 2019 2020 Sales $778.8 $913.7 $1,091.7 Cost of Goods Sold $395.7 $438.4 $462.9 Gross Profit $383.1 $475.3 S628.8 $281.0...

Q:

YETI Holdings, Inc. (Dollars in Millions) Actual 2018 2019 2020 Sales $778.8 $913.7 $1,091.7 Cost of Goods Sold $395.7 $438.4 $462.9 Gross Profit $383.1 $475.3 S628.8 $281.0 $385.5 $414.6 SG&A Other...

Q:

1. Take a look at the year-over-year income statement. How have the three companies been performing over time in terms of revenue and income growth? 2. Take a look at the common size income statement...

Q:

9. Given the following industry ratios for 2020, how do you evaluate the financial performance of Computron (poor or better) a. Operating profit margin = 7.20% b. Basic earning power = 15.60% c. ROE...

Q:

Given the following industry ratios for 2020, how do you evaluate the financial performance of Computron ( poor or better ) and explain: a. Operating profit margin 7.20% b. Basic Earning Power 15.60%...

Q:

PLEASE ANSWER THESE QUESTIONS DONT COPY FROM INTERNET SOURCE PLEASE IT SHOWS PLAG c)What KEY FACTORS may determine the success for Gap Inc.? Explain THREE in your answer. d)Recommendations Make...

Q:

Explain with the help of a diagram Mintzberg's basic organisational framework. (30 marks) Differentiate between an entrepreneurial organisational structure and a machine bureaucratic organisational...

Q:

Lowes is a leading retailer in the home improvement field. Complete the component percentage analysis on the companys income statement that follows. Discuss any insights provided by thisanalysis....

Q:

Which of the following statements is untrue regarding the statement of cash flows? Multiple Choice The statement of cash flows presents information about cash flows that the other statements either (...

Q:

Draw a class diagram and its relationship based on the following statements. You can use any UML tool/software to represent your class diagram. Do NOT copy and paste your diagram, use the attachment...