This value is the ratio of Net Income Before Extraordinary Items plus the taxable portion of the Interest Expense, divided by the average Total Long Term Debt and Shareholders Equity, expressed as a percentage for the period. The denominator is measured as the average at the beginning and the end of the period.
Formula:
ROI% = 100 * ( NetIncBXor + IntExp * (1 - TaxRate) ) / (a0 + a1) / 2
a0 = ( DbtTot + EqTot ) end of period
a1 = ( DbtTot + EqTot ) beginning of period
TaxRate: country specific (ex: USA 21%, CAN 26.5%, IRL 12.5%)
IMPORTANT: Quarterly values from Income & Cashflow statements are annualized to make the resulting factor more readily comparable with 12 month factors. The annualization is done by multiplying the quarterly figures by approximately 4 (depends on the actual number of days in the period).