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Barnes & Noble Education Inc ROIC

What is the ROIC of Barnes & Noble Education Inc?

The ROIC of Barnes & Noble Education Inc is -2.40%

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 Consumer Discretionary sector on NYSE compared to Barnes & Noble Education Inc

What does Barnes & Noble Education Inc do?

barnes & noble education, inc. operates bookstores for college and university campuses, and k-12 institutions in the united states. it operates in three segments: retail, wholesale, and digital student solutions. the company sells and rents new and used print textbooks, digital textbooks, and publisher hosted digital courseware through physical and virtual bookstores, as well as directly to students through textbooks.com. it also offers first day and first day complete access programs; bnc oer+, a turnkey solution for colleges and universities, that offers digital content, such as videos, activities, and auto-graded practice assessments; and general merchandise, including collegiate and athletic apparel, school spirit products, lifestyle products, technology products, supplies, and convenience items. in addition, the company sells hardware and a software suite of applications that provides inventory management and point-of-sale solutions; direct-to-student subscription-based writing se

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