Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 1
The article didn't mention this you are using the current quarter's invested capital as opposed to the average invested capital over the last four quarters. Usually you take the average when you calculate metrics like return on invested capital, but the article used current quarter's number only.

The reason why your number are off is because the article neglected to mention that they backed out Cisco's long term investments (~$14 billion on 6/30/00). My own calculation for Cisco's IC is ~$7.2 billion and a TTM average of ~$4.3 billion.

Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.