Reorganizing Traditional Financial Statements

To move forward, it is important to understand these key concepts and how they are calculated. With this knowledge, one can connect how supply chain and operations actions affect these key value drivers. The process of finding the information and computing the calculations can be confusing however, recognizing the pieces of the calculations creates a greater understanding of how supply chain and operational actions may affect the outcomes. 

To calculate ROIG and FGF, the balance sheet is reorganized to find invested capital and the income statement is reorganized to find NOPLAT The terms in the following equations are defined as ROIG is the return a company earns on each dollar invested in the business. NOPLAT is the after-tax profit generated from a company s core operations. Invested capital is the cumulative amount a company has 

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