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Old 11-21-2007, 12:13 AM
rharmelink rharmelink is offline
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Join Date: Jul 2006
Posts: 175
Re: 1/5/10 ROIC - How do I determine average?

Quote:
Originally Posted by tdsimpson View Post
I am studing ISRG...[on AdvFN] 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?
I suspect the difference is because you're looking at fiscal year numbers and they are looking at rolling annual periods. That is, we're currently 9 months into 2007, which is running at 14.9 YTD. replace the -28.1 with 14.9 and you get an average of 10.5, but then you don't quite have 5 years of data.
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