The ROIC of Solocal Group is 13.34%
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.
Solocal Group S.A. provides digital services in France and internationally. Its services include connect that allows VSEs and SMEs to manage their digital presence on PagesJaunes and various Web through mobile application, or a web interface, as well as manages interactions between professionals and their customers; and booster that allows companies to increase their digital visibility in the Web. The company was formerly known as PagesJaunes Groupe and changed its name to SoLocal Group S.A. in June 2013. Solocal Group S.A. was founded in 1896 and is based in Boulogne-Billancourt, France.