![Quote](images/misc/quote_icon.png)
Originally Posted by
Snoopy
I have decided to go over to the 'Winner's Side' and roll out a few ROIC calculations. Since Winner has already done this one I will check his working ;-)
Numbers are taken from the Income Statement and Balance Sheet of AR2020 for SKL:
ROIC = EBIT(1-T) / (Equity + Borrowings)
= $42.486m(1-0.28) / ( $184,563m + ($0.830m + $41.300m) = 13.49%
So it looks like Winner is correct :-)
SNOOPY
P.S. Woke in the middle of the night and remembered I should have taken the cash balance off the current borrowings,
= $42.486m(1-0.28) / ( $184,563m + ($0.830m - $13.617m + $41.300m) = 14.36%
So it looks like Winner is (mostly) correct :-)
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