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Old 11-20-2007, 12:30 PM
tdsimpson tdsimpson is offline
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Join Date: Nov 2007
Posts: 5
Question 1/5/10 ROIC - How do I determine average?

I am studing ISRG on ADVFN Financials (Many thanks to the fellow who shared that URL).

On the Intuitive Surgical Company Financial Information page, I found the following:

Return on Capital Invested (ROCI): 12.2
Return on Capital Invested (ROCI) - 5YEAR AVRG.: 9.5

So I thought I would see if I could get the same figure for the ROCI 5YEAR AVRG. of 9.5. So I pressed the "Historical Annual Reports" button to get the ROCI numbers for the last five years. Under the Profitability section I got:

2002: -28.1
2003: -3.4
2004: 7.5
2005: 21.3
2006: 12.2

When I add up the ROCI for these years, I get 9.5 and I have not divided by 5 yet. So that make me wonder if ROCI 5YEAR AVRG is really an average.

Did I do something wrong?

Thanks,
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