New ratios preview (ROIC, WACC, and more)

yuvaltaylor
Sun, 15 Feb 2026 13:21:52 +0000

marco:

FactSet ROIC = 100 * FF_NET_INC / FF_INVEST_CAP
FactSet FF_INVEST_CAP = FF_SHLDRS_EQ + FF_DEBT_LT

This is almost the same as our ROI formula. The only difference is that our ROI adds back tax-adjusted interest expense.

marco:

We are about to unveil a tool to quickly test IC for any factor or formula.

The result will depend on the universe, the period tested, the forward return horizon, and the rebalancing period (if that's different from the forward return horizon). If you use different inputs, two different formulas for the same thing might well give you different optimal results. Don't get me wrong, I'd love to be able to use the information coefficient in my testing. But it may not be a tiebreaker.