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Mondi plc ROIC

What is the ROIC of Mondi plc?

The ROIC of Mondi plc is 13.48%

What is the definition of ROIC?



Return on invested capital (ROIC) is a financial ratio that measures how efficient a company is at allocating the capital under its control to profitable investments.

= NOPAT / Invested capital = EBIT * (1 - tax rate) / (2-year average liabilities + 2-year average shareholder equity)

Return on invested capital (ROIC) ratio gives investors a sense of how well a company is using money under its control to generate profitable returns.

ROIC can be used as a benchmark to calculate the valuation of companies across industries. A higher ROIC means the company is doing a better job of investing the money from shareholders and bondholders to run the business. A company is creating value if its ROIC exceeds 2%. If its ROIC is under 2%, the company is likely destroying value and has no excess capital to invest in future growth.

You can calculate ROIC with the following formula:


NOPAT = Net operating profit after tax
Invested Capital = Average total liabilities + Average shareholders' equity

The averages of liabilities and shareholders' equity are calculated as geometrical averages of the last two annual values from the company's balance sheet.

ROIC of companies in the Materials sector on LSE compared to Mondi plc

What does Mondi plc do?

Mondi plc engages in the manufacture and sale of packaging and paper products in Africa, Western Europe, Emerging Europe, Russia, North America, South America, Asia, and Australia. It operates in Corrugated Packaging, Flexible Packaging, Engineered Materials, and Uncoated Fine Paper segments. The company offers flexible packaging, bags, and pouches; personal care components; release liners; technical films; corrugated packaging solutions; industrial bags; barrier coatings; specialty Kraft and sack Kraft papers; containerboards; and office and professional printing papers. It serves customers in the agriculture, automotive, building and construction, chemicals and dangerous goods, food and beverages, graphic and photographic, home and personal care, medical and pharmaceutical, office and professional printing, paper and packaging converting, pet care, retail and e-commerce, and shipping and transport industries. The company was founded in 1967 and is based in Addlestone, the United Kingdom.

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