Question

How do I find the ROIC from these financial statements?

(9) 294 CONSOLIDATED STATEMENTS OF OPERATIONS 12 Months Ended USD ($) Feb. 02, 2019 Feb. 03, 2018 Jan. 28, shares in Millione, $ In Millions 2017 CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract Sales $ 7,939 $ 7,782 $ 7,788 5,326 5,411 Cost of sales 5,130 1,501 1,614 Selling, general and administrative expenses 1,472 Depreciation and amortization 178 173 158 Litigation and Other Charpes 37 211 Income from operations 699 10 1,000 Interest (Income) / expense, net Other income 578 713 Income before income taxes 1,004 172 340 Income tax expense Net Income $ 541 2LP $ 284 21.133.141 $ 664 Basic eamings per share $4.68 $ 2.23 $4.95 Weighted average shares outstanding 115.6 127.2 134.0 Diluted earnings per share $ 4.68 $ 2.22 $4.91 Weighted-average shares outstanding, assuming 116.1 127.9 135.1 dilution M) Operating profil represents income before income taxes, Interest (Income /expense, net, and non- operating income.c 121 During the fourth quarter of 2017, the Company recorded a provisional $99 milion tax liability for the mandatory deemed repatriation of foreign sourced net earnings and a corresponding change in our permanent reinvestment assertion under ASC 74030. During second, third, and fourth quarters 2018, the Company recorded benefits of $1 million, $23 million, and S4 million from the completion of the accounting for the Tax Act. See Nole 17 Income Taxes for further information.Quarterly Income per share amounts do not total to the annual amount due to changes in weighted average shares outstanding during the year. Additionaly, stock options and other potentially dilutive common shares were excluded from the compulation of diluted earnings per common share for the quarter ended February 3, 2018 as the Company reported a net loss, 13) During the fourth quarters of 2018 and 2017, the Company recorded pre-tax non-cash Impairment charges totaling $19 milion and $20 million, respectively. See Nole 3, Litigation and Other Charges for further Information. 14 During the third quarter of 2017, the Company recorded a pre-tax charge of $13 million associated with the reorganization and the reduction in staff taken to improve efficiency. See Note 3, Lligation and Other Charges for further information.

Answer 1

Formula for ROIC

Net Operating Profit after tax(NOPAT)/ Invested Capital

Particulars	Feb 2 2019	Feb 3 2018
NOPAT (WN 1)	574	409
Invested Capital (WN 3)	1361	1366
ROIC	41.98%	29.94%

W.N. 1

Calculation of NOPAT

Particulars	Feb 2 2019	Feb 3 2018
Operating profit	699	571
Add: Non operating income tax losses	19	33 (20+13)
Net Operating Profit	718	604
Less: Normal Income Tax (WN 2)	144	195
NOPAT	574	409

WN 2

Computation of Normal Tax

Particulars	Feb 2 2019	Feb 3 2018
Income Tax	172	294
Less: Non recurring tax liability	28	99
Normal Tax	144	195

WN 3

Calculation of Invested Capital

Particulars	Feb 2 2019	Feb 3 2018
Shareholder equity	2506	2519
Long term debt	124	125
Less: Cash and cash equivalents	1269	1278
Invested Capital	1361	1366