Additional question on ROIC, I read Mauboussin's paper on intangibles recently. What's everyone's thoughts on capitalizing intangibles like R&D, etc. to adjust NOPAT and Invested Capital for ROIC?
I like the idea of it, but I think it's extremely hard breaking those numbers out. Mauboussin provided a general adjustment:
- Capitalizing all of the R&D expense: 6 year amortization
- Capitalizing 30% of Non-R&D SG&A Expense: 2 year amortization