ROIC Improved In Each Of The All Cap Index Sectors Through 3Q21
0ROIC Improved In Each Of The All Cap Index Sectors Through 3Q21 This report is an abridged and free version of All Cap Index Sectors: ROIC vs. WACC Through 3Q21, one of our quarterly series on fundamental market and sector trends. The Aggregate methodology provides a straightforward look at the entire sector, regardless of market cap or index weighting and matches how SP Global calculates metrics for the SP 500. Appendix: Analyzing ROIC with Different Weighting Methodologies We derive the metrics above by summing the individual NC 2000/sector constituent values for revenue, NOPAT, and invested capital to calculate the metrics presented. Market-weighted metrics – calculated by market-cap-weighting the ROIC for the individual companies relative to their sector or the overall NC 2000 in each period. Details: Company weight equals the company’s market cap divided by the market cap of the NC 2000/its sector We multiply each company’s ROIC by its weight NC 2000/Sector ROIC equals the sum of the weighted ROICs for all the companies in the NC 2000/each sector Market-weighted drivers – calculated by market-cap-weighting the NOPAT and invested capital for the individual companies in the NC 2000/each sector in each period.