Tibbs Inc.had the following data for the year ending 12/31/12: Net income = $300; Net operating profit after taxes (NOPAT)= $400; Total assets = $2,500; Short-term investments = $200; Stockholders' equity = $1,800; Total debt = $700; and Total operating capital = $2,300.What was its return on invested capital (ROIC)?

Question

Quizplus · Accepted Answer

NOPAT                      $40
Tatal aperating capital        $2,300 
ROIC = NOPAT/Total operating capital
ROIC = $400/$2,300
ROIC = 17.39%

Tibbs IncHad the Following Data for the Year Ending 12/31/12: Net