Data Dictionary: Return on Invested Capital

This point-in-time backtest dataset contains the data we use to calculate ROIC along with variant calculations of ROIC for comparison. This factor incorporates all of the adjustments featured in the HBS & MIT Sloan paper "Core Earnings: New Data and Evidence" and others. The authors plan to publish their findings on the incremental alpha generation of these other adjustments in a subsequent paper.


We deliver the real-time version of this data through our API in the Return on Invested Capital endpoint.


Backtest Dataset Sample & General Information

Download a sample of the backtest data for this dictionary.


This documentation details the common fields in a backtest dataset file.

Datapoints

Name
Description
Datapoint
Invested Capital
Invested capital is the value of the money invested in a business over its lifetime.
CAPITAL_INVESTED
Average Invested Capital
Average Invested Capital over the year, adjusted for acquisitions. The denominator of our ROIC calculation.
CAPITAL_INVESTED_ADJUSTED
Average GAAP-Based Invested Capital
Average Invested Capital calculated based only on reported GAAP data from the financial statements. GAAP-Based Average Invested Capital is what is generally provided by other data providers. This is compared to New Constructs' Average Invested Capital, which is based on critical information from the MD&A and footnotes.
CAPITAL_INVESTED_ADJUSTED_GAAP
Beginning Invested Capital
Invested capital at the beginning of the year.
CAPITAL_INVESTED_BEGINNING
GAAP-Based Invested Capital
Invested Capital calculated based only on reported GAAP data from the financial statements. GAAP-Based Invested Capital is what is generally provided by other data providers. This is compared to New Constructs' Invested Capital, which is based on critical information from the MD&A and footnotes.
CAPITAL_INVESTED_GAAP
Gross Invested Capital
Gross Invested Capital is calculated like our regular Invested Capital calculation, but also includes accumulated depreciation and amortization. We use Average Gross Invested Capital as the denominator in our ROGIC calculation.
CAPITAL_INVESTED_GROSS
Average Gross Invested Capital
Average Gross Invested Capital is calculated like our regular Average Invested Capital calculation, but also includes accumulated depreciation and amortization. We use Average Gross Invested Capital as the denominator in our ROGIC calculation.
CAPITAL_INVESTED_GROSS_ADJUSTED
Average Invested Capital Using Last 4 Quarters
Average invested capital of the last four quarters.
CAPITAL_INVESTED_Q_AVG
Average Invested Capital Using Year-over-Year Data
Average invested capital using the year-over-year period-beginning and -ending values.
CAPITAL_INVESTED_YOY_AVG
NOPAT (Net Operating Profit After Tax)
NOPAT (Net Operating Profit After Tax)
NOPAT
GAAP-Based NOPAT
NOPAT calculated based only on reported GAAP data from the financial statements. GAAP-Based NOPAT is what is generally provided by other data providers. This is compared to New Constructs' NOPAT, which is based on critical information from the MD&A and footnotes.
NOPAT_GAAP
Gross NOPAT (Net Operating Profit After Tax)
Gross NOPAT is calculated like our regular NOPAT calculation but with depreciation and amortization expense added back.
NOPAT_GROSS
Return on Gross Invested Capital (ROGIC)
Return on Gross Invested Capital. Gross NOPAT divided by Average Gross Invested Capital. Gross NOPAT is calculated like our regular NOPAT calculation but with depreciation and amortization expense added back. Gross Invested Capital is calculated like our regular Invested Capital calculation, but also includes accumulated depreciation and amortization.
ROGIC
ROIC (Return On Invested Capital)
ROIC (Return On Invested Capital)
ROIC
ROIC (Return On Invested Capital) Using Ending Invested Capital
Return on invested capital using period-end invested capital.
ROIC_CAPITAL_INVESTED
ROIC (Return On Invested Capital) Using Beginning Invested Capital
Return on invested capital using period-beginning invested capital.
ROIC_CAPITAL_INVESTED_BEGINNING
ROIC (Return On Invested Capital) Using Average Quarterly Invested Capital
Return on invested capital using the average invested capital of the last four quarters.
ROIC_CAPITAL_INVESTED_Q_AVG
ROIC (Return On Invested Capital) Using Year-over-Year Average Invested Capital
Return on invested capital using the year-over-year average invested capital.
ROIC_CAPITAL_INVESTED_YOY_AVG
GAAP-Based ROIC
Return on Invested Capital calculated based only on reported GAAP data from the financial statements. GAAP-Based NOPAT and Average Invested Capital is what is generally provided by other data providers. This is compared to New Constructs' NOPAT and Average Invested Capital, which are based on critical information from the MD&A and footnotes.
ROIC_GAAP

*Indicates the datapoint is affected by stock price.