Alcoa Tangible Asset Value vs Invested Capital Analysis

    Tangible Asset Value vs Invested Capital

    Tangible Asset Value

    The value of tangibles assets calculated as the difference between Total Assets and Goodwill and Intangible 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.

    Accounts Relationship

    Tangible Asset Value vs Invested Capital

    Significance: Almost No Relationship

    Overlapping area represents amount of trend that can be explained by analyzing historical patterns of Alcoa Tangible Asset Value account and Invested Capital

    Correlation Coefficient

    0.19
    Relationship DirectionPositive 
    Relationship StrengthInsignificant