Alcoa Invested Capital vs Tangible Asset Value Analysis

    Invested Capital vs Tangible Asset Value

    Invested Capital

    Invested capital represents the total cash investment that shareholders and debt holders have contributed to Alcoa Inc. There are two different methods for calculating Alcoa Inc 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.

    Tangible Asset Value

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

    Accounts Relationship

    Invested Capital vs Tangible Asset Value

    Significance: Very Week Relationship

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

    Correlation Coefficient

    0.21
    Relationship DirectionPositive 
    Relationship StrengthVery Weak