Personal Finance & Money Asked by Cristian Cotoi on March 20, 2021
I am attempting to calculate Return on Invested Capital using Alpha Vantage API. Can anyone help me validate the formulas below?
I am not sure I get the proper result, as I can’t even find 2 stock analysis websites to agree on the values.
Source | 2016 | 2017 | 2018 | 2019 | 2020 |
---|---|---|---|---|---|
Morning star: DAVA | 35.34 | 27.77 | 23.38 | 18.70 | 8.77 |
MSN: DAVA | 9.90 | ||||
GuruFocus: DAVA | 28.57 | 26.01 | 20.76 | 23.07 | 11.86 |
Rule 1 investing: DAVA | 56.0 | 34.5 | 27.3 | 14.4 | 9.1 |
Below formulas results (based on other internet sources) | 53.65 | 36.70 | 28.16 | 15.80 | 7.84 |
ROIC = Net Operating Profit after Tax / (Total equity + total Interest Bearing Debt)
Get balance sheet (from alpha vantage). I got "totalShareholderEquity" and "currentDebt" from here.
Get income statement. I calculated NOPAT = "operatingIncome" * (1 – "incomeTaxExpense" / "incomeBeforeTax")
ROIC = Net Operating Profit after Tax / (Total equity + total Interest Bearing Debt)
NOPAT = operatingIncome * (1 – incomeTaxExpense / incomeBeforeTax)
NOPAT = 21872000 * (1 – 3846000 / 25256000)
NOPAT = 18541318
ROIC = NOPAT / (totalShareholderEquity – currentDebt)
ROIC = 18541318 / (236327000 + 0)
ROIC = 7.84%
So how far are my calculations from the reality? I tried different formulas found around the web, but given my lack of financial experience, I can’t match them perfectly on the values I get from Alpha Vantage.
If you would like/can look over the code, I posted a corresponding question on StackOverflow
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