Since the numerator (NOPLAT) is computed net of taxes, wouldn’t the ROIC allows to see how companies are competing with each other in different tax regmines?
is that comparison relevant … as an analyst … (which is where you are now).
if Company A had a tax advantage, hence went into the investment - but Company B was tax disadvantaged, hence never tried the investment - do you still say Company A is better than B - because it has better ROIC?
maybe the investment needs to be taken completely out of the picture and then the remainder of company A’s ROIC compared with that of B?