Table:
|  | 2019 | 2018 |
| --- | --- | --- |
|  | £m | £m |
| Total equity | 826.3 | 766.9 |
| Net debt | 334.1 | 235.8 |
| Total invested capital | 1,160.4 | 1,002.7 |
| Average invested capital | 1,081.6 | 992.9 |
| Average invested capital (excluding IFRS 16) | 1,061.2 | 992.9 |
| Operating profit as reported under IFRS | 245.0 | 299.1 |
| Adjustments (see adjusted operating profit) | 37.7 | (34.2) |
| Adjusted operating profit | 282.7 | 264.9 |
| Taxation | (80.6) | (73.1) |
| Adjusted operating profit after tax | 202.1 | 191.8 |
| Adjusted operating profit after tax (excluding IFRS 16) | 201.2 | 191.8 |
| Return in invested capital | 18.7% | 19.3% |
| Return in invested capital (excluding IFRS 16) | 19.0% | 19.3% |
Paragraphs:
Return on invested capital (ROIC)
ROIC measures the after tax return on the total capital invested in the business. It is calculated as adjusted operating profit after tax divided by average invested capital.
An analysis of the components is as follows:
Question:
What does the ROIC measure?
Answer: the after tax return on the total capital invested in the business