Table:
| USDm | 2019 | 2018 | 2017 |
| --- | --- | --- | --- |
| Operating profit/(loss) (EBIT) | 205.9 | 2.8 | 39.5 |
| Tax | -0.8 | -1.6 | -0.8 |
| EBIT less Tax | 205.1 | 1.2 | 38.7 |
| Invested capital, opening balance | 1,469.4 | 1,406.0 | 1,387.7 |
| Invested capital, ending balance | 1,786.0 | 1,469.4 | 1,406.0 |
| Average invested capital for the year | 1,627.7 | 1,437.7 | 1,396.9 |
| Return on Invested Capital (RoIC) | 12.6% | 0.1% | 2.8% |
Paragraphs:
ALTERNATIVE PERFORMANCE MEASURES – continued
Return on Invested Capital (RoIC): TORM defines RoIC as earnings before interest and tax (EBIT) less tax, divided by the average invested capital for the period. Invested capital is defined below.
RoIC expresses the returns generated on capital invested in the Group. The progression of RoIC is used by TORM to measure progress against our longer-term value creation goals outlined to investors. RoIC is calculated as follows:
Question:
How does TORM define RoIC?
Answer: TORM defines RoIC as earnings before interest and tax (EBIT) less tax, divided by the average invested capital for the period