Alcoa Invested Capital vs Average Assets Analysis

    Invested Capital vs Average Assets

    Invested Capital

    Invested capital represents the total cash investment that shareholders and debt holders have contributed to Alcoa Corporation. There are two different methods for calculating Alcoa invested capital: operating approach and financing approach. Understanding ##company1# invested capital allows investors to to calculate measures of performance such as return on invested capital or return on capital employed. Invested capital is an input into the calculation of Return on Invested Capital, and is calculated as: Total Debt plus Total Assets minus Goodwill and Intangible Assets minus Cash and Equivalents minus Current Liabilities. Please note this calculation method is subject to change.

    Average Assets

    Average asset value for the period used in calculation of Return on Average Equity and Return on Average Assets, derived from Total Assets.

    Accounts Relationship

    Invested Capital vs Average Assets

    Significance: Almost No Relationship

    Overlapping area represents amount of trend that can be explained by analyzing historical patterns of Alcoa Invested Capital account and Average Assets

    Correlation Coefficient

    0.11
    Relationship DirectionPositive 
    Relationship StrengthInsignificant