Facebook Invested Capital vs Earnings before Tax Analysis

Invested Capital vs Earnings before Tax

Accounts Relationship

Invested Capital vs Earnings before Tax

Significance: Almost Identical Trend

Overlapping area represents amount of trend that can be explained by analyzing historical patterns of Facebook Invested Capital account and Earnings before Tax

Correlation Coefficient

0.98
Relationship DirectionPositive 
Relationship StrengthVery Strong

Invested Capital

Invested capital represents the total cash investment that shareholders and debt holders have contributed to Facebook. There are two different methods for calculating Facebook invested capital: operating approach and financing approach. Understanding ##company1# invested capital allows investors 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.

Earnings before Tax

Earnings Before Tax is calculated by adding Income Tax Expense back to Net Income.

Did you try this?

Run Alpha Finder Now
   

Alpha Finder

Use alpha and beta coefficients to find investment opportunities after accounting for the risk
View All  Next Launch Alpha Finder

Generate Optimal Portfolios

Align your risk and return expectations
Fix your portfolio
By capturing your risk tolerance and investment horizon Macroaxis technology of instant portfolio optimization will compute exactly how much risk is acceptable for your desired return expectations
Additionally see Investing Opportunities. Please also try World Markets Correlation module to find global opportunities by holding instruments from different markets.