IC
Invested Capital
Short definition
Invested capital is the capital tied in operations: operating NWC plus net PPE, or equity plus net debt (excess cash out). It is the ROIC denominator.
Detailed explanation
If the two bridges are inconsistent, ROIC inflates. Including goodwill is “acquisition IC”; excluding it is “organic IC”. Putting surplus cash in IC dilutes operating return with treasury return.
Year-end IC in a heavy-investment year cuts ROIC temporarily; average IC is softer.
Why it matters for the CFO
Value creation hangs on the ROIC − WACC spread. A wrong denominator cosmetics the spread.
How it is calculated
IC ≈ Faaliyet NWC + Net duran varlıklar = Özkaynak + Net borç (fazla nakit hariç)
Variables in the formula
- IC: Capital tied in operations
How to read it
IC growth is ΔNWC + capex − depreciation. Growth IC that does not earn above WACC destroys value.
Numerical example
OWC 110, net PPE 290 → IC = 400 mn TL. Equity 220 + net debt 180 = 400 (consistent bridge).
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Definitions are educational. They are not investment, credit or tax advice.