Return on invested capital
NOPAT divided by invested capital, as a percentage. NOPAT is EBIT after tax. Invested capital is the operating capital tied up in the firm.
On a teaching sheet, invested capital is equity plus interest-bearing debt minus surplus cash. Leave surplus cash in and ROIC is understated, because cash you could hand back is not operating capital.
ROIC is supposed to be independent of how the capital was funded. Return on equity is not: interest is already deducted and the denominator is equity only. Compare ROIC with WACC.
The ROIC calculator works NOPAT then the ratio.