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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.