We're gonna calculate the return on invested capital for Aidas, and you'll notice that the earnings numbers we're looking at are, uh, focusing on the 30th September, 2018.

So their most recent earnings numbers, the first thing we're gonna hunt for is operating profit.

So if we jump into the A Aida PIB for 2018, and we're gonna go and take a look at page 27, which is the income statement.

If we scroll down, we can see operating profit. There is 2, 2, 3 9.

So let's copy that and paste that in.

What I wanna do next is pick up the tax expense.

So if we go back to the Adidas pip, back to their, their income statement and pick up their income taxes of 6 2 8, let's copy that and paste that in.

And then we want to calculate that. Then we want to pick up the profit before tax.

So let's go back and pick up the income before taxes of 2, 2, 4, 4.

Let's copy that and paste that in.

Now what we can do is calculate the effective or average tax rate.

So I go and grab the tax expense and divide that by the profit before tax.

We've got a 28% effective tax rate.

What I'd like to do is take the operating profit and tax, adjust that.

So if I grab the operating profit and multiply it by one minus the effective tax rate, I get the notepad number.

Okay, so that's dealt with the earnings number.

I want to now think about the invested capital.

You'll notice the change of date.

So if you think about what we're doing here, we're gonna pick up the, uh, the invested capital at the 30th, September, 2017.

So for the, the year before.

So we are thinking about what capital did we have invested a year ago relative to over the course of the last year, the returns that we've generated.

So the first thing we wanna do is pick up the total debt.

So let's go back to the Aida P and if we go on to page 26, so the prior page, uh, this is the bottom half of the balance sheet.

So let's focus here on September, 2017.

What I'd like to do is go and pick up the, or anything that looks like debt.

So I'm gonna get the short term borrowings of 711.

And to that I'm going to go and add 345, which is the other financial, other current financial liabilities.

It's paste that in.

Plus let's go back to the balance sheet and I'm gonna pick up 983, which is the Number for the long term borrowings.

Let's copy that and paste that in.

And I'm also going to go and pick up 19.

So 19, which you can see below.

If we just move the cursor, you can see below is the other non-current financial liabilities.

So let's add that in.

So that gives us the total debt, but what I wanna do is, uh, take away the cash and current financial assets because they're, they're not, uh, invested capital.

So let's go and find those.

If we go back to the balance sheet, uh, suggest that we look at the page prior.

So the top end of the balance sheet.

And you can see we've got cash of 1, 3, 4, 3.

And we're going to add to that the short term financial assets of five.

So let's add that in. So now I can calculate net debt.

Net debt would be a total debt less, uh, cash gives us our, uh, net debt right now to go and pick up the equity so I can capture, uh, our total invested capital.

So if we go back to the balance sheet, back to the bottom of the balance sheet again. So on page 26 and right at the bottom, total equity of 6 0 3 0.

So let's copy that and paste that in.

And so our invested capital would be the sum of our net debt and our equity invested capital of 6, 7, 4 0 return on invested capital would be equal to noad divided by invested capital result gives me 23.9%.