where is the upside?, page-10

Noomxx, 60% was a mistake. ROIC is actually over 100%.

I learned how to calculate ROIC from Joel Greenblatt's book, not from any formal textbooks. So it is normal we have different numbers. In this case, as I said, ROIC represents how much tangible capital is required to run daily operations. So looking at numbers on AMA's balance sheet.

ROIC = EBIT/(Current Receivables + Inventory + Property and Plant - Trade Payables+other non-cash Current Liabilities)

Please note cash and goodwill are not included. Also interest bearing current liabilities are not including. The reasoning of the method was discussed in Joel Greenblatt's book.

Then you can calculate for yourself.