Other Operating Assets, Net of Other Liabilities
Any other assets or non-interest-bearing liabilities that are related to the operations of the business are also included in invested capital. In deciding whether an item is operating or non-operating, make sure that the treatment of the asset is consistent with the treatment of any associated income or expense in calculating NOPLAT. Also, consider industry norms so that the calculation of ROIC is as consistent as possible with the company’s peers.
July 26th, 2009