# How to Calculate Return on Invested Capital After Taxes in Xero

### Making the most of your Xero data

## What is Return on Invested Capital After Taxes?

Return on Invested Capital (ROIC) is a financial metric that measures how well a company is using the money invested in it.

The formula for ROIC is:

ROIC = Net Operating Profit After Tax / Invested Capital

Net Operating Profit After Tax (NOPAT) is the amount of profit left over after all operating expenses have been paid. Invested Capital is the total amount of money invested in the company, including equity and debt.

The higher the ROIC, the better the company is using the money invested in it.

## How do you calculate Return on Invested Capital After Taxes in Xero?

It can be difficult to calculate Return on Invested Capital After Taxes directly inside of Xero; that's where Causal comes in.

Causal is a modelling tool which lets you build models on top of your Xero data. You simply connect Causal to your Xero account, and then you can build formulae in Causal to calculate your Return on Invested Capital After Taxes.

## What is Causal?

Causal lets you build models effortlessly and share them with interactive, visual dashboards that everyone will understand.

In Causal, you build your models out of variables, which you can then link together in simple plain-English formulae to calculate metrics like Return on Invested Capital After Taxes. This makes your models easy to understand and quick to build, so you can spend minutes, not days, on your models.

When you're done, you can share the link to your model with stakeholders. They'll be able to view your model's outputs in a visual dashboard, rather than a jumble of tabs and complex formulae. The dashboards are interactive, letting viewers tweak your assumptions to see how they affect the model's outputs.

Causal lets you add visuals in a single click, letting you plot out graphs and distributions for metrics like Return on Invested Capital After Taxes.